The U.S. Securities and Exchange Commission (SEC) has put off its decision on two important cryptocurrency-related exchange-traded fund (ETF) applications. Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera ETF will now be subject to further review until November 12. This delay reflects the SEC’s increasing attention on the increasing number of crypto ETF applications.
The SEC’s move to extend its deadline for these applications fits into its larger trend of dragging out reviews of cryptocurrency-related funds. As institutional interest in digital assets has increased, the agency is still evaluating whether or not such ETFs meet regulatory standards.
Bitwise Dogecoin ETF Review Extended
Bitwise’s application for a Dogecoin ETF, which it filed for in March, has now been delayed until November 12. This filing, which was first published in the Federal Register in March, was part of a wider push to bring crypto-based investment products to regulated exchanges. The SEC’s decision to push out the deadline even further gives testimony to how careful a process is used to review such proposals.
As part of its decision-making process, the SEC has been taking a hard look at the potential market impact of Dogecoin ETFs. Regulators have in the past pointed to fears of possible market manipulation from cryptocurrencies, and particularly Dogecoin, an altcoin. The delay reflects the agency’s ongoing need to make sure investors are protected before any approval.
Despite the delay, Bitwise is taking the bright side for its Dogecoin ETF. The company is certain its proposal will be able to meet the necessary regulatory standards once reviewed. This delay is a further chapter in the SEC’s increased examination of how digital assets can fit into the traditional financial landscape.
Also Read: Dogecoin ETF Nears SEC Approval: First U.S. Launch Could Be Next Week
Grayscale Hedera ETF and Other Crypto Fund Reviews
The SEC also deferred its decision on Grayscale’s proposal to list a Hedera ETF. Like Bitwise Dogecoin ETF, the new deadline for a decision has been set for November 12. Grayscale’s move is part of its wider push to bring altcoin ETFs to market in the wake of the success of its Bitcoin ETF.
Grayscale’s application is among a slew of crypto ETF proposals that have been submitted this year. The company’s previous success in converting the Grayscale Bitcoin Trust into the first spot bitcoin ETF in the U.S. has been a precedent for similar conversions. Now, it wants to extend this model to other digital assets, such as Hedera.
The SEC’s reluctance to approve these ETFs is a reflection of its thoughtful consideration of market volatility and investor protection. Given the rapid growth in cryptocurrency, the SEC’s pressure is ever-growing to develop guidelines that make the world of crypto easier to innovate while managing risk effectively. The Nov. 12 deadline allows the SEC more time to assess the impact of these products on the broader market.
The Surge of Altcoin ETF Applications and SEC’s Growing Backlog
The SEC’s delay also comes amid an overwhelming surge of altcoin ETF applications for 2025. Since the beginning of the year, more than 31 applications to issue altcoin spot ETFs have been made. These proposals include ETFs for assets such as Solana, XRP, Litecoin, and BNB among others.
Also Read: “Altcoin ETFs Summer” Is Coming: Analysts Say SEC Is Set to Unleash Altcoin Season
The steady stream of applications is leaving the SEC with a backlog, with at least 92 crypto-related ETF products awaiting decisions as of late August. The SEC’s cautious approach makes sense, given the massive growth in institutional interest in digital assets such as Solana and XRP. These two coins alone have been the subject of several ETF proposals in response to the rising institutional demand for them.
While the SEC continues to extend its review periods, industry players continue to hope that regulatory clarity will eventually come. In the case of Bitwise, the company is still pushing for approval as it believes that such ETFs will help bridge the gap between traditional investors and the growing digital asset market.
Summary
The SEC has pushed the decision on both the Bitwise Dogecoin ETF and on the Grayscale Hedera ETF back to November 12. This delay is part of a broader trend in which the SEC is taking extra time to review a series of cryptocurrency ETF applications coming in. As institutional interest in digital assets has been increasing, the SEC continues to evaluate the potential risks and benefits of these products.
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Questions in FAQs
What is Bitwise Dogecoin ETF?
The Bitwise Dogecoin ETF is an investment fund that follows the price of Dogecoin, a popular altcoin.
Why did the SEC delay its Bitwise Dogecoin ETF decision?
The SEC dragged its feet as to whether or not it should properly review the potential market risks and ensure investor protection.
When will the SEC rule on Bitwise and Grayscale ETF applications?
The new decision deadline for both Bitwise and Grayscale ETFs is Nov. 12.
What does the SEC’s delay mean for cryptocurrency ETFs?
The delay suggests the SEC’s caution in approving digital asset funds, with concerns surrounding market manipulation and safeguarding investors.
For that purpose, how does Grayscale intend on expanding its ETF offerings?
Grayscale hopes to replicate its model for Bitcoin ETF for other digital assets as well, such as Litecoin and Bitcoin Cash.
Glossary of Key Terms
- ETF: A financial product that tracks the performance of an asset or index and is traded on an exchange.
- Bitwise: A company that manages cryptocurrency investment products, including the proposed Dogecoin ETF.
- Hedera: A public distributed ledger designed for decentralized applications, with a focus on speed and scalability.
- SEC: U.S. government agency responsible for regulating securities markets to protect investors.
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