SEC Delays Decisions on Multiple Crypto ETFs as Applications Pile Up

The SEC has postponed decisions on several crypto ETFs, including Bitwise’s Bitcoin and Ethereum proposals and Canary Capital’s Hedera ETF. Deadlines are now set for June 10 and June 11. The delays are part of a wider increase in ETF applications, coupled with a leadership change within the SEC that may influence future approvals. Analysts continue to foresee Bitcoin ETFs dominating the market despite a growing array of altcoin-related applications.

The U.S. Securities and Exchange Commission (SEC) has officially delayed its decisions regarding multiple crypto exchange-traded funds (ETFs). This includes Bitwise’s Bitcoin and Ethereum ETFs, as well as Canary Capital’s Hedera ETF. The agency has set new deadlines for June 10 and June 11, respectively, although the SEC has not provided specific reasons for the postponements aside from needing additional time to review everything carefully.

Recently, the SEC has been inundated with a surge in ETF applications which has led to this wave of delays. Notably, Grayscale’s attempt to convert its Polkadot Trust into an ETF has also been pushed back, with June 11 now marking its revised deadline. The SEC is trying to gather more insights, including public feedback, before making any final decisions.

Amid these delays, there’s been a shake-up in SEC leadership with Paul Atkins taking over as Chair. Speculation is rife that his more crypto-friendly outlook could signal a shift towards more approval of digital asset investment products, including potentially more crypto ETFs in the future.

Bloomberg analyst James Seyffart has highlighted the increasing number of pending ETF submissions. The pending list notably features applications tied to popular cryptocurrencies such as Solana, Ripple, and Litecoin, alongside various meme coins, indicating that the interest in crypto ETFs continues to grow.

The SEC isn’t just focused on individual token ETFs; it’s also evaluating proposals for index-style funds that group multiple cryptocurrencies. This makes for a diverse landscape of ETF applications awaiting a regulator’s nod. Despite the influx of altcoin-based ETFs, analysts like Balchunas argue that Bitcoin-focused ETFs will still majorly dominate the market for the foreseeable future. Bitcoin ETFs currently hold an impressive 90% share of all global crypto fund assets, suggesting that Bitcoin will likely maintain a strong hold over the market, even with growing interest in altcoins.