SEC Delays Decisions on Dogecoin, Hedera, and Avalanche Spot ETFs

The U.S. SEC has once again postponed its decisions on multiple spot cryptocurrency ETF applications, including Bitwise’s Dogecoin ETF, Grayscale’s Hedera Trust, and Canary Capital’s HBAR ETF.

This move underscores the regulator's cautious approach toward cryptocurrency-related financial products and may have significant implications for market sentiment and the broader regulatory timeline.

Regulatory Caution and Market Implications

"Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved," the agency wrote in each of the filings. "Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change."

While the regulator has not disclosed specific reasons for the delay, it has emphasized the need for further public commentary and thorough review. Other pending ETF applications, such as those related to Solana (SOL), may see decisions within the next two to four months.

This latest postponement reflects the SEC’s ongoing hesitancy toward approving spot cryptocurrency ETFs, despite growing pressure from industry participants and investors.

The delay could potentially dampen market sentiment, as institutional and retail investors alike are eager for more regulated investment vehicles to access the cryptocurrency market. Analysts have noted that the approval of these ETFs could significantly enhance market liquidity and provide broader exposure to digital assets.

Industry Frustration and Broader Context

The SEC's slow pace in reviewing cryptocurrency ETF applications has drawn criticism from industry stakeholders.

Many argue that the regulator’s approach lacks transparency and fairness, with some companies suggesting that the process should operate on a "first-come, first-served" basis. Despite these criticisms, the SEC continues to take a cautious stance, citing the need to ensure investor protection and market stability.

This delay adds to the growing list of postponed cryptocurrency ETF decisions, with dozens of applications still awaiting approval. Notably, the SEC’s decision to delay comes amidst increased scrutiny of the cryptocurrency market, following high-profile collapses of digital asset firms in recent years.

Companies like Grayscale and VanEck have indicated their willingness to revise application documents to meet the SEC’s requirements. However, the lack of a clear timeline for approval has left many in the industry uncertain about the future of cryptocurrency ETFs in the U.S.