Despite advances since January 2024, the SEC maintains a slow and controlled approach, balancing positive signals, regulatory uncertainties, and a desire to maintain control. While the crypto industry hoped for accelerated procedures, the US Securities and Exchange Commission (SEC) has once again chosen to delay its decision regarding several cryptocurrency-related index funds linked to Polkadot (DOT) and Hedera (HBAR). Originally expected this week, the decisions are now scheduled for June 11.
Grayscale and Canary will have to wait for HBAR and DOT ETFs
The Committee believes that it is appropriate to set a longer period for taking action on the proposed rule change, as modified by Amendment No. 1, to allow time to fully consider the proposed rule change and the issues raised by the proposed rule change.
Two cases are concerned: the request from Grayscale to transform its Polkadot Trust into an ETF, and the one from Canary that wants to introduce a fund based on the HBAR token. These proposals, submitted in February, are part of a wave of similar initiatives. The interest of asset managers in listed crypto products is not waning, due to a regulatory climate that some consider more favorable since the beginning of the year.
The SEC justifies this additional delay by the need for “sufficient time to review the proposed amendments and the issues they raise” according to official documents. This wording, already used in other cases, emphasizes the agency’s persistent caution despite a partial opening to the sector.
Bitwise also waiting
Asset manager Bitwise, in the running for a Bitcoin and Ethereum combined ETF, will also have to wait. The deadline for a decision on their product has now been set for June 10. Although Bitcoin Spot ETFs were approved in January 2024, followed by the Ethereum ETFs last summer, the SEC continues to evaluate new projects on a case-by-case basis.
A more favorable but still uncertain context
This new episode is part of a contrasting dynamic. Since January, the SEC has shown positive signs towards crypto players, including organizing public roundtables and withdrawing several lawsuits. The upcoming meeting, scheduled for tonight, will focus on the crucial issue of digital asset custody.
However, this more open posture is still punctuated by administrative delays. While the delays this week do not indicate a refusal, they reflect a desire to maintain control in a still-evolving regulatory environment. For project holders, the road to listing new exotic crypto ETFs remains full of obstacles.
