SEC's Prolonged Scrutiny of Altcoin ETFs Tests Market Patience

The U.S. Securities and Exchange Commission (SEC) has pushed back its decision on the Bitwise Dogecoin ETF to November 12, 2025. This extension adds to the growing list of altcoin ETF applications under review by the agency, reflecting the increasing complexity and volume of proposals in the cryptocurrency market. The Bitwise Dogecoin ETF, initially filed in March 2025, is one of several altcoin-focused funds that have faced prolonged scrutiny from the SEC. The regulatory delay underscores the commission’s cautious approach to approving new crypto-related investment products.

Alongside the Bitwise Dogecoin ETF, the SEC also extended its review of Grayscale’s Hedera ETF application to the same November 12 deadline. This move aligns with broader patterns in the SEC’s handling of crypto ETFs in 2025, where the commission has repeatedly extended decision deadlines rather than issuing immediate approvals or rejections. As of August 29, 2025, 92 crypto-related ETF products were pending regulatory action. This includes proposals for XRP, Solana, Litecoin, Avalanche, and BNB, highlighting the competitive and evolving nature of the altcoin ETF landscape.

The extended review period for the Bitwise Dogecoin ETF has raised concerns among investors and market observers about the SEC’s regulatory approach. The agency cited the need for additional time to analyze public comments and address questions about Dogecoin’s volatility, liquidity, and susceptibility to price manipulation. These concerns echo earlier objections raised during Grayscale’s attempt to register a Dogecoin ETF. The SEC’s prolonged evaluation highlights the commission’s emphasis on investor protection and market integrity, particularly for assets with limited regulatory precedents.

Bitwise has defended the Dogecoin ETF by emphasizing the token’s high trading volume, broad user base, and established presence in the crypto market. The company argues that these factors support Dogecoin’s readiness for a regulated investment vehicle. The ETF, if approved, would allow investors to gain exposure to Dogecoin through a traditional stock exchange, without directly holding the digital token. This structure could broaden accessibility to a broader range of investors and contribute to the mainstream adoption of altcoin-based ETFs. However, the speculative nature of Dogecoin and its historical price volatility remain key risks for potential investors.

The regulatory uncertainty surrounding altcoin ETFs has not significantly impacted Dogecoin’s price performance in the short term. As of the latest data, Dogecoin is trading around $0.2407, with a year-to-date increase of over 150%. Despite the SEC’s delay, the token has shown resilience, with a 40% gain over the past six months and a 14% increase in the last week. However, the asset’s price history is marked by sharp swings, with a 24% decline since the start of 2025. These price dynamics reflect the inherent volatility of meme-based cryptocurrencies and the broader crypto market.

The SEC’s handling of altcoin ETFs in 2025 has revealed a regulatory landscape characterized by delays, procedural complexity, and cautious oversight. While the commission has approved the first spot Bitcoin and Ethereum ETFs after years of rejections, it has maintained a more conservative stance toward altcoin proposals. The extended review periods and the backlog of applications suggest that the SEC is balancing innovation with risk mitigation. This regulatory environment may influence the pace at which new crypto investment products gain market acceptance and shape the trajectory of altcoin adoption in mainstream finance.