The U.S. Securities and Exchange Commission (SEC) has opted to delay its decisions on two cryptocurrency exchange-traded fund (ETF) applications. The Bitwise Dogecoin ETF and the Grayscale Hedera ETF will now undergo additional review until November 12.
Delay on Dogecoin ETF Decision
Bitwise's application for a Dogecoin ETF, filed in March, has been postponed to November 12. This application was part of a broader initiative to introduce cryptocurrency-based investment products to regulated exchanges. The SEC’s decision to extend the deadline demonstrates the thoroughness with which such proposals are analyzed.
As part of its decision-making process, the SEC is carefully examining the potential market impact of Dogecoin ETFs. In the past, regulators have raised concerns about possible market manipulation involving cryptocurrencies, particularly Dogecoin. The delay reflects the agency’s ongoing need to ensure investor protection prior to any approval.
Despite the delay, Bitwise is optimistic about their Dogecoin ETF, expressing confidence that their proposal will meet the necessary regulatory standards once reviewed.
Grayscale Hedera ETF and Other Proposals
The SEC also postponed its decision on Grayscale's proposal to list a Hedera ETF. Like the Bitwise Dogecoin ETF, the new deadline was set for November 12. Grayscale's initiative is part of a broader effort to bring altcoin ETFs to market, following the success of their Bitcoin ETF.
Grayscale’s application is among a series of cryptocurrency ETF proposals submitted this year. The company’s previous success in converting the Grayscale Bitcoin Trust into the first spot Bitcoin ETF in the U.S. set a precedent for similar conversions. Now, Grayscale aims to extend that model to other digital assets like Hedera.
Increase in Altcoin ETF Requests and SEC's Regulatory Approach
The SEC's delay also comes amid a significant influx of altcoin ETF requests for 2025. More than 31 applications for spot altcoin ETFs have been filed since the beginning of the year, including for assets like Solana, XRP, Litecoin, and BNB.
This steady flow of requests has left the SEC with a backlog of pending applications, with at least 92 cryptocurrency-related ETF products awaiting decisions as of late August. The SEC's cautious approach makes sense given the rapid growth of institutional interest in digital assets like Solana and XRP. These two cryptocurrencies alone have been the subject of numerous ETF proposals in response to growing institutional demand.
The SEC has delayed decisions on the Bitwise Dogecoin ETF and Grayscale Hedera ETF until November 12, reflecting a broader trend of dedicating more time to analyzing a growing number of cryptocurrency ETF applications. As institutional interest in digital assets continues to rise, the SEC remains focused on evaluating the potential risks and benefits of these products.
