The U.S. Securities and Exchange Commission (SEC) has extended its review period for two novel cryptocurrency exchange-traded fund (ETF) proposals and initiated a public comment period for options trading on a third, existing multi-asset crypto ETF. The decisions, published on January 12, 2026, underscore the regulator's cautious and methodical approach to digital asset investment products.
The SEC designated a longer period to consider proposed rule changes that would allow the listing of the Canary Pudgy Penguins (PENGU) ETF on Cboe BZX and the T. Rowe Price Active Crypto ETF on NYSE Arca. Both filings are under the SEC's standard 19b-4 process, which permits an extension of the initial 45-day decision window. The commission cited the need for more time to evaluate market structure, investor protection, and potential manipulation concerns.
The Canary PENGU ETF is particularly unconventional, as it seeks to provide exposure to the Pudgy Penguins ecosystem, a prominent non-fungible token (NFT) collection. This proposal tests the boundaries of what the SEC is willing to approve, potentially allowing meme and NFT-adjacent exposure within an ETF wrapper.
Meanwhile, the T. Rowe Price Active Crypto ETF represents a significant move by a traditional finance giant—with over $1.4 trillion in assets under management—into the crypto space. Unlike passive Bitcoin ETFs, this vehicle would be actively managed, investing in a diversified basket of digital assets beyond just Bitcoin (BTC) and Ethereum (ETH).
In a parallel development, the SEC opened a public comment period on a proposal from NYSE American to list standardized options on the Grayscale CoinDesk Crypto 5 ETF. This fund tracks an index of five large-cap digital assets: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). The comment phase allows market participants to weigh in on whether listing options on this fund aligns with Exchange Act standards for fair and orderly markets and protections against fraud.
If approved, options on a multi-asset crypto ETF would introduce new layers of leverage and hedging tools to the digital asset market, expanding a derivatives ecosystem currently centered on Bitcoin and Ether products. The delays for the PENGU and T. Rowe Price ETFs do not indicate a final judgment but reflect the SEC's desire for thorough review of products that stretch beyond blue-chip crypto exposure. Final decisions could come by late February or early March 2026, though further extensions remain possible.
