SEC's Strategic Delays Signal a Calculated ETF Rollout

The U.S. Securities and Exchange Commission (SEC) has extended its review period for two altcoin exchange-traded fund (ETF) applications, delaying its decision on the Bitwise Dogecoin and Grayscale Hedera ETFs until November 12. Both proposals were submitted earlier in the year and are now part of a growing pile of crypto ETF applications awaiting regulatory approval. The SEC has increasingly opted to extend deadlines rather than issue early rulings, using the full duration of its statutory review periods for multiple filings. This pattern reflects a broader regulatory approach marked by caution and a synchronized review strategy.

The SEC’s decision to push back deadlines for these two altcoin ETFs aligns with a broader trend in which the agency is managing a record number of crypto-related ETF applications. As of August 29, at least 92 crypto ETFs were pending a decision, with a significant concentration in applications for Solana (SOL) and XRP. The institutional interest in altcoins is evident, as firms seek to diversify beyond Bitcoin and Ethereum and gain exposure to a broader range of digital assets. The Grayscale Hedera ETF, in particular, is part of the firm’s broader strategy to transform its existing trust structures—such as the Litecoin and Bitcoin Cash trusts—into ETFs, a process it successfully executed with the conversion of its Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF in 2024.

The SEC’s extended timelines are not indicative of outright rejection but may signal a methodical approach to handling multiple applications in coordinated waves. This strategy appears designed to prevent a sudden and potentially destabilizing influx of new ETFs onto the market. In August alone, the SEC delayed several high-profile filings, including the Truth Social Bitcoin and Ethereum ETF, as well as the 21Shares and Bitwise Solana ETFs. These synchronized delays suggest a deliberate effort to manage market expectations and avoid triggering a cascading approval process that could result in excessive volatility.

Market analysts have noted the significance of the SEC’s evolving stance, particularly under the leadership of SEC Chair Paul Atkins, who has taken a more industry-friendly approach since assuming the role in April. This regulatory shift is accompanied by increased optimism from industry experts, with Bloomberg analysts raising the probability of XRP, Dogecoin, and Cardano ETF approvals to 90% by the end of 2025. These developments reflect a broader anticipation of regulatory clarity and institutional adoption, positioning the fall of 2025 as a pivotal moment for altcoin ETFs in the U.S. market.

With over 31 altcoin ETF applications filed in the first half of the year, the SEC faces an unprecedented challenge in processing a saturated pipeline while maintaining a consistent and coherent regulatory framework. The outcome of the Bitwise Dogecoin and Grayscale Hedera ETF applications may serve as a bellwether for the broader approval landscape, setting the stage for the potential introduction of a wide range of altcoin ETFs in the coming months.