SEC Delays Decisions on Major Crypto ETFs
The U.S. Securities and Exchange Commission (SEC) has once again made headlines by delaying its decisions on two significant exchange-traded fund (ETF) applications: the Bitwise Dogecoin ETF and the Grayscale Hedera ETF. Originally set for a much earlier approval, both applications will now remain under SEC review until November 12, 2025.
Background on the ETF Applications
The Bitwise Dogecoin ETF application, which was initially filed in March 2025, has generated considerable interest in the crypto community. Following its publication in the Federal Register on March 17, the application commenced its statutory review period. The delayed decision signals the SEC’s cautious approach towards approving cryptocurrency-related investment products, particularly those that focus on less traditional assets like Dogecoin. Meanwhile, the Grayscale Hedera ETF application also faces the same November deadline, reinforcing the notion that the SEC is taking its time to evaluate these applications thoroughly.
Grayscale’s Innovative Moves
Grayscale Investments, a major player in the cryptocurrency asset management space, has been actively seeking to convert its existing trusts—specifically those tied to Litecoin and Bitcoin Cash—into ETFs. This move aims to facilitate daily share creations and redemptions that help maintain prices more in line with the net asset value (NAV). Currently, the over-the-counter (OTC) markets have exhibited significant discrepancies between share prices and their true value, causing both potential and existing investors to face steep premiums and discounts.
Notably, Grayscale has already set a precedent by converting the Grayscale Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF. This recent development indicates that Grayscale is keen on expanding its ETF offerings to include other cryptocurrencies.
Altcoins and the ETF Surge
The delay in the SEC’s decision highlights a broader trend in the cryptocurrency investment landscape: a surge of altcoin ETF applications. As of July 31, 2025, there were at least 31 applications filed for altcoin spot ETFs in the first half of the year, featuring proposals for cryptocurrencies such as XRP, Dogecoin, Solana, Litecoin, Avalanche, and BNB. The interest in these altcoins has prompted institutional demand that cannot be ignored.
By August 29, 2025, the number of cryptocurrency-related ETF products awaiting SEC decisions had swelled to an astonishing 92. Among these, Solana and XRP have garnered substantial institutional interest, reflecting a growing desire for diversified investment vehicles that encompass a variety of digital assets.
SEC’s Cautious Approach
Historically, the SEC has chosen to extend the review periods for ETF applications rather than offering quick approvals or rejections. This cautious approach has resulted in growing delays, which many insiders interpret as an attempt to thoroughly vet the potential risks associated with the burgeoning field of cryptocurrency ETFs. For example, throughout August 2025, the SEC postponed decisions on multiple crypto ETF filings, showcasing a consistent trend of caution from the regulatory body.
Implications for Investors
The implications of these delays are significant for investors and the crypto market as a whole. The extended review periods mean that products aimed at making cryptocurrency investments more accessible through the ETF structure are still pending, causing uncertainty in the markets. Investors might remain hesitant to engage with certain digital assets until clearer regulatory paths are established.
As inquiries pour in, such as "How high can the price of Dogecoin go when a Dogecoin ETF is approved?" the answers largely depend on regulatory actions. The uncertainty surrounding the SEC’s timelines could continue to impact trading behaviors and market sentiment.
The Bigger Picture
The SEC’s decision to delay is more than just a procedural matter; it offers insight into the regulatory landscape regarding cryptocurrency in the United States. As the sector continues to mature, the agency’s approach could either foster more institutional participation or deter it, depending on how well it balances innovation and investor protection.
In essence, while the path to approving cryptocurrency ETFs may be fraught with challenges, the increasing volume of applications and evolving financial products signal a robust interest in integrating digital currencies into mainstream finance. As these developments unfold, they will undoubtedly shape not only the future of the cryptocurrency market but also the broader financial landscape.
