Regulators Stall Altcoin ETF Wave as Mystery Deepens

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the Bitwise Dogecoin and Grayscale Hedera ETF applications, pushing the review period to November 12, 2025. This move comes amid a growing number of altcoin ETF applications submitted by asset management firms in 2025, reflecting increasing interest from institutional investors in alternative cryptocurrencies. The SEC has extended its review period for several proposals, often utilizing the full statutory timeframes rather than making early determinations.

The Bitwise Dogecoin ETF application, submitted through NYSE Arca in March 2025, is being considered under commodity trust rules, with the firm emphasizing Dogecoin’s liquidity, user base, and established presence in the crypto market. The delay allows the SEC additional time to analyze the proposal and incorporate public feedback, which has raised concerns about the volatility and price manipulation risks of altcoins such as Dogecoin. The agency has historically taken a cautious stance on crypto ETFs, only approving spot Bitcoin and Ethereum ETFs in 2024 after extensive review and debate.

Grayscale has also submitted its Hedera ETF application and plans to convert its Litecoin and Bitcoin Cash trusts into ETFs. This follows the successful conversion of the Grayscale Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF in 2024 after legal challenges with the SEC. The firm is applying the same strategy to Bitcoin Cash and Litecoin, seeking to provide investors with daily share creation and redemption capabilities that could reduce market premiums and discounts seen in OTC trading.

As of August 29, 2025, at least 92 crypto-related ETFs were under SEC review, with institutional interest particularly evident in applications for Solana (SOL) and XRP. The SEC has consistently extended its review periods for multiple filings, including applications from 21Shares, WisdomTree, and others, often citing the need for further evaluation and public input. These delays have created uncertainty for the market, with investors and firms closely monitoring regulatory developments.

Despite the regulatory delay, Dogecoin’s price has shown relative stability, trading at around $0.2407 as of the latest update. Over the past six months, the token has appreciated by nearly 40%, and compared to the same period in 2024, it has surged by over 150%. However, the coin remains volatile and has not yet recovered to its early 2025 peak. The outcome of the SEC’s decision on November 12 may provide clarity for the broader altcoin ETF landscape and set a precedent for future proposals.

The continued buildup of ETF applications underscores the increasing legitimacy of alternative cryptocurrencies in institutional portfolios. If approved, the Bitwise Dogecoin ETF could become the first U.S.-listed fund focused on a meme coin, offering investors a regulated and accessible way to gain exposure to Dogecoin without directly holding the underlying asset. Analysts have speculated on the potential price implications of an ETF launch, but any forecasts remain speculative until the SEC issues a final determination.