SEC Postpones Decisions on Bitcoin, Ethereum, and Hedera ETFs Amid Growing Crypto ETF Wave
The U.S. Securities and Exchange Commission (SEC) has once again hit the pause button on several major crypto ETF proposals, including Bitwise’s Bitcoin and Ethereum ETFs and Canary Capital’s Hedera (HBAR) ETF. The decision to delay comes as the agency faces an overwhelming influx of cryptocurrency-based ETF applications.
In filings dated April 24, the SEC announced new deadlines of June 10 for Bitwise’s Bitcoin and Ethereum ETFs, and June 11 for Canary Capital’s Hedera ETF. The regulator cited the need for “additional time to carefully evaluate the proposals and consider public feedback.”
This isn't an isolated incident. The SEC has also pushed back a decision on Grayscale’s attempt to convert its Polkadot (DOT) Trust into a full-fledged ETF, now also rescheduled for June 11.
A Shifting Landscape: SEC’s Crypto ETF Backlog Grows
These delays come at a critical moment for crypto regulation, with Paul Atkins, known for his crypto-friendly stance, stepping in as the new SEC Chair. His appointment may signal a more open-minded approach to digital asset investment products and possibly usher in a new era for crypto ETFs in the U.S.
According to Bloomberg ETF analyst James Seyffart, the backlog of pending crypto ETF applications is growing rapidly. Among the waiting list are products tied to some of the market’s most well-known altcoins, including:
Solana (SOL), Ripple (XRP), Sui (SUI), Litecoin (LTC), Axelar (AXL), Binance Coin (BNB), Cardano (ADA), Avalanche (AVAX), Dogecoin (DOGE), Aptos (APT), Chainlink (LINK), Bonk (BONK),
Even some meme-coins like Pudgy Penguins (PENGU) and Official Trump (TRUMP), and Melania (MELANIA) are now being considered for ETF listings.
Beyond Single Tokens: Index Funds and Multi-Crypto ETFs on the Table
The SEC is also reviewing a new wave of index-style crypto ETFs, which bundle multiple digital assets into a single product, an appealing structure for investors seeking diversified exposure to the crypto market.
While excitement around altcoin ETFs is clearly on the rise, industry analysts remain cautious about their long-term impact. Eric Balchunas, a senior ETF analyst at Bloomberg, believes Bitcoin ETFs will continue to dominate the crypto ETF ecosystem:
“Bitcoin ETFs hold 90% of all crypto fund assets globally. Even as we see a flood of altcoin and meme coin ETFs hitting the market, I expect Bitcoin to maintain an 80–85% market share over the long run,” he shared on X (formerly Twitter).
The SEC's ongoing delays underscore the complexity and growing demand for crypto-based ETFs. With a new, potentially more receptive leader at the helm and a wave of altcoin ETFs waiting in the wings, the next few months could be pivotal for the future of crypto investing in the U.S.
As deadlines loom and regulatory tides shift, crypto investors and institutions alike are watching closely. Whether it’s Bitcoin ETFs leading the way or a broader acceptance of altcoin and index-based products, one thing is clear: the crypto ETF race is just heating up.
