The U.S. Securities and Exchange Commission (SEC) has postponed its decisions on proposed ETFs linked to Polkadot (DOT) and Hedera (HBAR), citing the need for additional public input. This delay pushes the timeline for final rulings to between September and November 2025. The move underscores the SEC's cautious approach toward approving crypto-related investment products amid ongoing regulatory uncertainties.
Specifically, the delay affects the Hedera ETF application submitted by Canary Capital and the Polkadot ETF application by Grayscale. Both proposals now face extended review periods with public commentary sought to inform the SEC's considerations. Analysts, including Bloomberg's James Seyffart and Eric Balchunas, predict that approvals for these and other crypto ETFs are unlikely before Q4 2025.
Market reactions to the ETF delays have been subdued; Polkadot’s price saw a moderate 4.52% increase over 24 hours, trading at around $4.30, while Hedera experienced a smaller gain of 1.65%, reaching approximately $1.798. Investor sentiment remains stable despite regulatory uncertainties.
Furthermore, the SEC's procedural extensions may redirect some institutional interest toward more crypto-friendly jurisdictions such as Europe, where regulatory frameworks for crypto ETFs appear comparatively more favorable and institutional investment in digital asset products continues to grow.
Meanwhile, Canary Capital, along with VanEck and 21Shares, has petitioned the SEC to reinstate the 'first-to-file' approval model, aiming to foster fairness and competitiveness in the ETF market. If adopted, this could provide Canary Capital with a strategic advantage in launching the first Hedera ETF over Grayscale.