Regulators Halt Altcoin ETF Momentum Amid Growing Market Demand

The U.S. Securities and Exchange Commission has extended its review of two altcoin exchange-traded fund proposals, including the Bitwise Dogecoin ETF and Grayscale's Hedera ETF, to November 12. This decision follows a growing trend of regulatory delays across multiple altcoin ETF applications. The SEC announced the postponement of decisions on both NYSE Arca’s Bitwise Dogecoin ETF and Grayscale’s Hedera ETF on the same day, aligning their review deadlines with the new November 12 date.

This delay is consistent with the SEC’s recent pattern of extending deadlines to the maximum allowable time under statutory review windows. In the past weeks alone, the agency has similarly delayed decisions for altcoin ETFs tied to Solana and XRP, further adding to the regulatory uncertainty in the crypto market. The agency’s approach has raised concerns among industry participants and institutional investors about the pace of approvals for diversified cryptocurrency products.

According to Bloomberg Intelligence analyst James Seyffart, the number of pending altcoin ETF applications has now reached 92. Among these, Solana and XRP-based products are attracting the strongest institutional interest, with eight and seven ETF applications pending, respectively. The high volume of submissions reflects growing investor demand for exposure to a broader range of cryptocurrencies beyond Bitcoin and Ethereum.

Institutional momentum for altcoin ETFs is also evident in recent developments, such as the SEC's acknowledgment of the Canary Staked SEI ETF filing on September 8. This marks the beginning of the regulatory review process for the first U.S.-listed SEI-based fund, further expanding the potential universe of altcoin ETF offerings. The agency’s decision to accept this application highlights a continued openness to innovative crypto products, despite the delays in approvals.

The extended review period has implications for market liquidity and investor confidence in altcoin markets. With a backlog of applications and repeated delays, market participants are left with limited visibility on when new products will be available for trading. This regulatory uncertainty can affect portfolio strategies, particularly for institutional investors seeking diversified crypto exposure. The delay also underscores the SEC’s cautious approach to approving products based on non-traditional asset classes, even as demand from the market increases.