SEC Delays Grayscale Polkadot ETF Decision Until June 11

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to approve a proposed exchange-traded fund (ETF) holding Polkadot’s native token, DOT. According to an April 24 filing, the regulator has extended its deadline for a final ruling until June 11, nearly four months after the Nasdaq sought permission to list Grayscale Polkadot Trust on February 24. This delay is part of a broader trend of regulatory scrutiny over crypto ETFs, with the SEC currently evaluating multiple proposals.

Grayscale’s ETF filing is one of roughly 70 proposed ETFs awaiting SEC approval. These proposals include funds holding various altcoins, memecoins, and crypto-related financial derivatives. The asset manager 21Shares is also awaiting permission to list its own Polkadot ETF, adding to the growing list of applications under review. Polkadot, launched in 2020, is a layer-1 blockchain network with a market capitalization of approximately $6.6 billion as of April 24.

Ask Aime: What's next for Polkadot's ETF approval?

The delay in approving Grayscale's Polkadot ETF reflects the SEC's cautious approach to crypto regulation. The agency is currently facing a backlog of over 70 crypto ETF filings, ranging from major altcoins to meme coin-themed and leveraged products. This cautious stance is likely to impact future ETF approvals, as the SEC continues to navigate the complexities of crypto regulation. The agency's previous leadership under Gary Gensler saw the approval of spot Bitcoin and Ethereum ETFs following a court decision favoring Grayscale. However, the current administration has signaled a more crypto-friendly stance, hosting industry roundtables and dropping several lawsuits against crypto firms.

The delay in approving Grayscale's Polkadot ETF suggests that the SEC is taking a meticulous approach to evaluating these proposals. This cautious stance is likely to impact future ETF approvals, as the agency continues to navigate the complexities of crypto regulation. Investors and industry stakeholders are now left to wait as regulatory uncertainty lingers over the next potential developments in the crypto ETF landscape. The SEC's decision to extend the review period for these ETFs underscores the need for thorough evaluation and consideration of the proposed rule changes, ensuring that any approved ETFs meet the necessary regulatory standards.