Regulators Weigh Future of Crypto ETFs in November Showdown

The U.S. Securities and Exchange Commission has announced a postponement in its decision regarding two cryptocurrency exchange-traded fund (ETF) applications. The agency will now provide its ruling on the Bitwise Dogecoin ETF and the Grayscale Hedera ETF by November 12, according to regulatory filings. The delay suggests the SEC is conducting a thorough review of the proposals, potentially to address regulatory concerns or investor protection issues.

The Bitwise Dogecoin ETF seeks to track the performance of the Dogecoin digital asset, which has gained traction as a meme-based cryptocurrency with a growing community and market capitalization. Meanwhile, the Grayscale Hedera ETF is designed to follow the Hedera Hashgraph platform, a blockchain technology that emphasizes speed and scalability. Both applications are seen as part of a broader trend of financial institutions seeking to bring digital assets into the traditional investment framework.

Market observers have noted that the SEC’s decision timeline is significant in the context of the ongoing regulatory debate around cryptocurrency. The agency has previously delayed or rejected several ETF applications from major asset managers, citing concerns about market manipulation and a lack of regulatory clarity. The delayed decision on these two funds could signal a more cautious approach by the SEC, particularly in light of recent developments in the broader cryptocurrency market.

The postponement may also reflect the agency’s internal discussions on whether to approve more speculative or newer cryptocurrencies for inclusion in ETF structures. While Bitcoin and Ethereum-based ETFs have received more regulatory attention, the inclusion of assets like Dogecoin and Hedera represents a shift toward broader acceptance of digital assets as legitimate investment vehicles. However, the SEC’s actions will likely shape the pace and scope of such developments.

Investors and crypto market participants are closely watching the outcome of these applications, as they could influence the legitimacy and accessibility of digital assets within mainstream financial markets. Analysts have suggested that a positive decision may encourage further innovation and institutional adoption, while a rejection or continued delay could reinforce regulatory uncertainty and slow down broader market acceptance.