The SEC's Delay on Crypto ETF Decisions: What's Brewing?
SEC Requires Further Deliberation on Proposed Exchange-Traded Funds for Polkadot and Hedera
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The U.S. Securities and Exchange Commission (SEC) has pushed back its decisions on applications for rule changes that would pave the way for trading exchange-traded funds (ETFs) based on the spot price of popular cryptocurrencies such as Polkadot, Hedera, and the dual powerhouse of Bitcoin and Ethereum. According to recent filings, the SEC has until June 11 to decide on the 19b-4 requests submitted by the Nasdaq Exchange for the Canary HBAR ETF and the conversion of a Grayscale Polkadot Trust. The SEC also has until June 10 to weigh in on a similar filing by the New York Stock Exchange for a Bitwise Bitcoin and Ethereum ETF.
Canary Capital, Grayscale Investments, and Bitwise Investments submitted these filings earlier this year. They are part of a growing wave of ETF proposals focusing on major altcoins, following the successful market debut of products tracking the prices of Bitcoin and Ethereum last year. In total, issuers are waiting for a green light from the SEC on 72 crypto-related ETFs.
Last week, Canary proposed a fund tracking Tron's TRX token and one offering staking benefits. They have also submitted proposals for spot Solana, PENGU, and Sui ETFs. Grayscale has proposed funds based on Solana, Cardano, XRP, Dogecoin, Litecoin, and Avalanche, while Bitwise has applied for ETFs tracking DOGE and Aptos, among others.
In addition to crypto-focused companies, traditional finance firms have also filed applications for funds based on options trading and publicly traded companies operating in the crypto space. As Eric Balchunas, Senior ETF Analyst at Bloomberg, wittily put it, "Gonna be a wild year."
The Grayscale Bitcoin Trust (GBTC) manages nearly $18 billion in assets under management (AUM), making it the second-largest among the eleven spot Bitcoin ETFs that received SEC approval last year (the conversion from an existing trust). The Bitwise Bitcoin ETF controls about $3.6 billion in AUM, making it the fifth-largest among these products.
Bitcoin funds collectively manage approximately $100 billion in AUM and have been among the fastest-growing products in the ETF industry's 32-year history, leading to surging demand for additional crypto funds. Polkadot and Hedera have seen increases of around 5% and 7%, respectively, in the past day.
Stay tuned for updates on these pending decisions, as it promises to be an exciting year for crypto ETFs!
Edited by Andrew Hayward**
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- The SEC has delayed its decisions on ETF applications for popular cryptocurrencies like Bitcoin, Ethereum, Polkadot, and Hedera, as shown in recent filings.
- Canary Capital, Grayscale Investments, and Bitwise Investments have submitted proposals for ETFs based on altcoins such as Tron's TRX, Solana, Cardano, XRP, and DOGE.
- Traditional finance firms are also seeking approval for funds based on options trading and publicly traded firms operating in the crypto space.
- The Grayscale Bitcoin Trust, with nearly $18 billion in assets under management (AUM), is the second-largest among the eleven spot Bitcoin ETFs that received SEC approval last year.
- Bitcoin funds collectively manage approximately $100 billion in AUM and have been among the fastest-growing products in the ETF industry's 32-year history, leading to increased demand for additional crypto funds.
- The SEC has until June 11 for the Canary HBAR ETF and the conversion of the Grayscale Polkadot Trust, and until June 10 for the Bitwise Bitcoin and Ethereum ETF.
- The SEC will also weigh in on similarly filed applications by the New York Stock Exchange for crypto ETFs.
- As of now, issuers are waiting for approval on 72 crypto-related ETFs from the SEC.
- Eric Balchunas, Senior ETF Analyst at Bloomberg, stated that this year will be wildly eventful for crypto ETFs, with surging demand and promising updates on the pending decisions.
