SEC’s ETF Drama: Delays, Dilemmas, and Digital Assets! 😂
- SEC delays Polkadot and Hedera ETFs, seeking more public input.
- Analysts foresee crypto ETF approvals in Q4 2025, not sooner.
As the air thickens with anticipation, like a summer storm brewing over the fields, we find ourselves once again at the mercy of the U.S. Securities and Exchange Commission (SEC). Two more digital asset funds, those darlings of the crypto world, Polkadot [DOT] and Hedera [HBAR], have now waltzed into the spotlight, only to be met with the SEC’s infamous pause button.
Hedera, Polkadot ETF Decisions Delayed
In a move that could only be described as a masterclass in bureaucratic ballet, the SEC has issued a fresh statement, requesting additional public input on these proposals. Yes, dear reader, they have chosen to postpone their decision past the upcoming second deadline, as if they were savoring a fine wine rather than rushing to a conclusion.
This delightful delay signals the agency’s continued cautious approach to crypto-linked investment products, even as market participants await definitive approval timelines with bated breath. Right before the second deadline, the SEC, in a fit of dramatic flair, decided to delay its decision on Canary Capital’s proposed Hedera ETF and Grayscale’s Polkadot ETF.
Instead of issuing a ruling, they announced they would open the proposals to additional public commentary. Because who doesn’t love a good public debate over digital assets?
These delays push the third deadline to the 9th of September, with a final ruling expected by the 8th of November. Mark your calendars, folks! 🗓️
In a similar act of suspense, the SEC has also delayed its response to the Canary Spot SUI ETF, deepening the uncertainty surrounding the future of these digital asset funds. It’s like waiting for the next season of your favorite show, only to find out it’s been postponed indefinitely.
What Are Analysts Anticipating?
Bloomberg analyst James Seyffart, with the air of a sage, has indicated that the U.S. SEC is unlikely to approve the pending crypto ETF applications in the near term. According to Seyffart, green lights for the proposed Polkadot and Hedera ETFs might not arrive until the fourth quarter, closer to their respective final deadlines later this year. Patience, dear investors, patience!
In fact, Eric Balchunas, another voice of reason in this cacophony, believes the same –
“Really good chance this exists at some point. First we’ll get slew of active crypto ETFs (eta Winter 2025). Active memecoin-only likely 2026 tho.”
For context, Grayscale remains the sole applicant for a Polkadot ETF, while both Grayscale and Canary Capital are pursuing HBAR ETFs, though Canary submitted its application first. It’s a race, but one that feels more like a leisurely stroll through a park.
With the second deadline for Grayscale’s HBAR ETF approaching on the 15th of June, another delay from the SEC appears likely. Surprise, surprise! 🎉
Suggestions for the SEC
In the meantime, Canary Capital, along with VanEck and 21Shares, has called on the Commission to revive the ‘first-to-file’ approval model, arguing that such a framework would enhance fairness and competitiveness in the ETF market. Because who doesn’t love a little competition?
While the SEC has yet to address the industry’s appeal to reinstate the ‘first-to-file’ rule, a favorable response could give Canary Capital an edge over Grayscale in launching the first Hedera ETF. It’s like a game of chess, but with much higher stakes!
Price Action of DOT and HBAR
However, despite the regulatory delays and ongoing discussions, the market reaction remained muted. It’s almost as if the investors are saying, “We’ve seen this movie before.”
For instance, DOT traded at $4.30, reflecting a 4.52% gain over the past 24 hours, while HBAR saw a modest 1.65% increase, reaching $1.798. This indicates that investor sentiment around these tokens remains relatively stable, even as ETF decisions hang in the balance. A true testament to the resilience of the crypto spirit! 💪
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2025-06-11 16:15