SEC Delays Review of PENGU and T. Rowe Price Cryptocurrency ETFs

The US Securities and Exchange Commission (SEC) has delayed its decision on the proposed PENGU and T. Rowe Price Active Crypto ETFs. The extension allows the SEC more time to evaluate the products' market structure, investor protection, and manipulation risks according to reports.

The PENGU ETF is designed to provide exposure to the Pudgy Penguins NFT ecosystem. It is one of the more unconventional crypto-related ETF proposals currently under review by the SEC. The fund would track an NFT collection known for its digital branding and utility tokens as detailed.

The T. Rowe Price's proposed ETF is an actively managed fund that would invest in a diversified basket of digital assets beyond Bitcoin and Ethereum. The firm plans to list the product on NYSE Arca. This approach differs from traditional passive index-tracking ETFs according to analysis.

Why Did This Happen?

The SEC uses the 19b-4 process to extend its decision window when reviewing complex financial products. This allows the commission up to 45 additional days to evaluate the consistency of the proposed rule changes with the Exchange Act and applicable rules as reported.

The PENGU ETF has been under review since mid-2025. It was revised in July 2025, and the SEC began its extended evaluation after instituting formal proceedings in September 2025 according to Cointelegraph.

The SEC cited concerns about the suitability of NFTs for ETF structures. The Pudgy Penguins NFT collection saw a sharp drop in floor prices following the launch of its native token, raising questions about market stability as noted.

How Did Markets React?

The crypto market has shown mixed reactions to the SEC's delay. Bitcoin and Ethereum prices have remained under pressure, with Bitcoin falling below $90,000. Spot ETFs for both assets have recorded net outflows in recent weeks according to market data.

The delay is seen as a continuation of the SEC's cautious approach to crypto ETFs. While it does not signal a rejection, it reflects the commission's need to address regulatory and market integrity concerns according to analysis.

Market participants view the extension as a standard part of the review process. Analysts suggest that the final decision is likely to come by late February or early March 2026, though further delays remain possible as reported.

What Are Analysts Watching Next?

Analysts are closely monitoring the SEC's decision on the PENGU and T. Rowe Price ETFs. A green light for these products would represent a significant step in the integration of digital assets into traditional investment vehicles according to industry analysis.

Institutional investors and market infrastructure providers are also watching for regulatory guidance on custody and valuation of digital assets. The SEC's review process often highlights unresolved issues in the crypto market as documented.

The SEC also opened a public comment period for options tied to the Grayscale CoinDesk Crypto 5 ETF. This fund tracks a basket of five major cryptocurrencies. The comment period allows market participants to weigh in on whether options trading should be permitted for the fund according to reports.

The outcome of these regulatory decisions could influence the broader adoption of crypto ETFs. Market analysts suggest that the final approvals would provide additional investment tools for both institutional and retail investors according to analysis.