The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale's application for a Polkadot ETF until June 11, 2025. This move reflects the regulator's cautious approach towards investments in altcoins.
SEC Extends Review Period for Polkadot ETF
The SEC has opted to give itself more time to evaluate Grayscale's Polkadot ETF application, indicating ongoing regulatory diligence. Grayscale, a major asset manager, is proposing this new financial product aimed at mainstream investors. A senior SEC official, Sherry R. Haywood, stated, 'The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.'
Market Awaits Polkadot ETF Decision Until June 2025
The delay influences market sentiment around Polkadot, with implications for other altcoins with pending ETF proposals. Institutional interest could drive further capital inflows to DOT once approved.
Past SEC Decisions Impact Crypto ETF Trajectory
Similar extensions have occurred with Bitcoin and Ethereum ETFs, showing the SEC’s cautious approach. Historical approvals followed multiple public comment periods and extensive reviews. Eric Balchunas from Bloomberg mentioned, 'Asset managers are pitching ETFs for' verything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between.' Based on past trends, eventual approval could boost market confidence in altcoin ETFs, expanding opportunities for asset managers and institutional investors.
Thus, the delay in the decision on Grayscale's Polkadot ETF underscores the SEC's caution regarding cryptocurrency assets, which may in turn affect the future of investments in altcoins.
