Regulators' Prolonged Scrutiny Stalls Altcoin ETF Hopes

The US Securities and Exchange Commission (SEC) has extended the review period for two altcoin ETF applications—Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF—to November 12, reflecting the agency’s continued cautious approach to crypto-related products. This move adds to a growing backlog of applications, with 92 crypto-related ETF products awaiting decisions as of late August.

The delay applies to NYSE Arca’s proposal to list the Bitwise Dogecoin ETF, an application initially filed in March and published in the Federal Register on March 17. The SEC has not issued any immediate feedback, maintaining the extended review period as it has with several other filings. Grayscale’s Hedera ETF application was also pushed back to the same deadline, suggesting the SEC is methodically processing the increasing volume of altcoin ETF proposals.

Grayscale, which successfully converted its Bitcoin Trust (GBTC) into the first US spot Bitcoin ETF in 2024 following a legal challenge, is now seeking to replicate that model with its Litecoin and Bitcoin Cash trusts. Converting these trusts into ETFs would allow for daily share creations and redemptions, aligning prices more closely with net asset value and reducing the volatility seen in OTC trading.

The SEC’s extended timelines underscore the regulatory uncertainty surrounding altcoin ETFs. As of July 31, at least 31 spot-ETF applications for altcoins—including XRP, Solana, Avalanche, and BNB—had been submitted in the first half of 2025. Institutional interest is particularly pronounced for Solana and XRP, with eight and seven applications pending for each, respectively.

In August, the SEC delayed several other crypto ETF proposals, including the 21Shares and Bitwise Solana ETFs, the 21Shares Core XRP Trust, and the WisdomTree XRP Fund. The pattern of repeated deadline extensions, rather than early approvals or rejections, has raised concerns among investors and industry participants about the clarity and consistency of the regulatory framework.

The SEC’s decision to delay the Bitwise Dogecoin ETF reflects a broader trend of cautious evaluation, with the agency citing the need for further evaluation and public input. This aligns with its recent behavior in other high-profile crypto cases, where transparency and investor protection appear to be top priorities. However, the prolonged review periods have created uncertainty for market participants and hindered innovation in the ETF space.

With the number of altcoin ETF applications rising sharply in 2025, the SEC faces increasing pressure to establish a clear and timely review process. The regulatory environment will likely continue to evolve as the agency balances innovation with investor safeguards, particularly in a market as dynamic as digital assets.