tl;dr
The U.S. Securities and Exchange Commission (SEC) has extended review periods for multiple crypto ETF applications, including those for Dogecoin, HBAR, Solana, Cardano, and Ethereum staking. Formal proceedings were initiated for the Bitwise Dogecoin ETF and Grayscale Hedera Trust in June, with deadl...
The U.S. Securities and Exchange Commission (SEC) has extended the review periods for multiple cryptocurrency ETF applications, including those related to Dogecoin, HBAR, Solana, Cardano, and Ethereum staking. This decision comes as the SEC initiates formal proceedings for certain proposals, such as the Bitwise Dogecoin ETF and Grayscale Hedera Trust, requesting additional public comments to address emerging legal and policy concerns.
Notably, several Solana ETF proposals from Bitwise, 21Shares, VanEck, and Canary Capital have been postponed until early July 2025, while deadlines for other ETFs like Grayscale's Cardano ETF and Bitwise's Ethereum staking ETF fall in mid-2024. Approximately 72 crypto-related ETFs are currently under SEC review, awaiting approval to list or offer options, highlighting the growing interest and complexity in regulating these products.
The SEC emphasized that these delays do not suggest predetermined conclusions but rather reflect the need for further input to ensure compliance with federal securities laws. The main focus centers on whether these crypto-based ETFs adequately prevent fraudulent and manipulative acts and protect investors, as mandated by Section 6(b)(5) of the Securities Exchange Act.
For these listings, exchanges must submit proposed rule changes to the SEC to adjust their standards to accommodate new ETF products. The Bitwise Dogecoin ETF was filed under NYSE Arca Rule 8.201-E, which pertains to commodity-based trust shares, while Grayscale's Hedera and Canary Capital's HBAR ETFs are reviewed under Nasdaq Rule 5711(d), both frameworks designed to ensure transparent and fair trading of trust shares.
This extension period allows the SEC to seek broader market feedback and thoroughly evaluate the policy and legal dimensions involved, reinforcing its commitment to investor protection amid the rapid evolution of crypto investment products.