Grayscale Pushes for Altcoin ETFs as SEC Delays Pile Up

The U.S. Securities and Exchange Commission (SEC) continues to extend its review periods for multiple altcoin ETF applications, creating a backlog that has reached 92 products as of August 29. Among the most recent delays are the Bitwise Dogecoin and Grayscale Hedera ETF applications, both of which now face a November 12 deadline. This comes after the SEC similarly postponed decisions on several other altcoin ETFs, including those tied to Solana (SOL) and XRP, with deadlines pushed into late October.

Grayscale, which successfully converted its Bitcoin Trust into a spot ETF in 2024, is now seeking regulatory approval for ETFs linked to Bitcoin Cash (BCH), Litecoin (LTC), and Hedera (HBAR). The firm filed an S-1 registration for a Litecoin ETF and S-3 filings for Bitcoin Cash and Hedera, signaling its intent to expand its crypto offerings. These applications add to a growing list of altcoin ETF proposals currently under SEC review. Grayscale is not alone in this effort, with Fidelity and VanEck also submitting proposals for digital-asset funds in anticipation of regulatory approval later in 2025.

The SEC’s prolonged review periods have raised concerns about the pace of approval. For instance, the agency delayed the decision on the Canary HBAR ETF and Grayscale Polkadot ETF until November 8, 2025. In both cases, the SEC has requested additional public comment and clarification on whether the products meet existing listing standards. This has created regulatory uncertainty for exchanges like Nasdaq, which are working to amend their rules to align with the SEC’s evolving expectations. The Hedera token (HBAR) remains resilient despite the delay, trading above $0.22 and showing a 1.8% rise this week.

The broader implications of these delays are evident in the expanding number of altcoin ETF applications. As of July 31, at least 31 altcoin ETFs had been submitted in the first half of 2025. The most heavily pursued are those for Solana (eight applications) and XRP (seven applications), reflecting growing institutional interest in diversifying crypto exposure. The SEC has largely opted to use the full length of its statutory review periods, which has contributed to a backlog of pending applications.

Analysts note that the approval of altcoin ETFs could significantly impact the broader cryptocurrency market by enabling mainstream investors to access digital assets through regulated channels. This could help reduce premiums and discounts seen in over-the-counter (OTC) trading and bring greater price stability to altcoins. However, the outcome of these applications remains uncertain, with the SEC yet to finalize its framework for listing altcoin ETFs. The Hedera ETF, in particular, has been a focal point due to Grayscale's prior success with the Bitcoin ETF, raising questions about whether the same model will be applied to other tokens.