The US Securities and Exchange Commission (SEC) has announced an extension of its timeline for deciding on proposed exchange-traded funds (ETFs) tied to Polkadot (DOT) and Hedera (HBAR). The decision deadline for Grayscale’s proposal to convert its Polkadot Trust into a spot ETF and Canary Capital’s plan to list a spot HBAR ETF has been pushed to June 11. Additionally, the SEC will delay a decision on Bitwise’s proposed joint Bitcoin (BTC) and Ethereum (ETH) ETF until June 10.
This extension comes as the SEC is currently facing a significant backlog of crypto-related filings. With 72 digital asset ETF proposals under review, including single-asset, dual-asset, and multi-asset funds tied to a variety of tokens beyond Bitcoin and Ethereum, the agency is taking the necessary time to carefully consider each proposal and any public comments received.
The recent surge in ETF applications follows the approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July of the same year. These approvals marked a significant milestone in opening up the crypto market to broader exposure through regulated investment vehicles.
Under the current administration, there has been a notable shift in regulatory posture at the SEC. The agency has rolled back enforcement actions against crypto firms and initiated public roundtables aimed at updating digital asset policy. The upcoming roundtable, scheduled for Friday, will focus on crypto custody frameworks, a crucial topic for institutions managing client assets.
While the SEC’s actions signal greater openness towards crypto products, the agency remains cautious in evaluating whether these new offerings meet investor protection standards. The SEC’s commitment to ensuring regulatory compliance and investor protection is paramount in the evolving landscape of digital assets.
In conclusion, the SEC’s decision to extend the timeline for reviewing proposed ETFs tied to Polkadot and Hedera reflects the agency’s dedication to thorough evaluation and consideration of new crypto products. As the regulatory landscape continues to evolve, investors can expect a continued focus on compliance and investor protection in the digital asset space.