Delayed ETF Decisions: Polkadot and Hedera Catch a Break...Maybe
SEC Postpones Decisions on Polkadot and Hedera ETFs, Outlining Future Steps
Alright, here's the lowdown on the latest crypto ETF drama. The US Securities and Exchange Commission (SEC) has rolled out the red tape yet again for the Hedera and Polkadot ETFs. These bad boys were poised for a decision by the second deadline, but nope, not happening. Instead, the SEC has requested more public input, effectively kicking the can down the road.
This move comes as no surprise, given the SEC's snail's pace when it comes to these crypto-linked investment products. Market participants are left hanging, waiting for definitive approval timelines.
Just when you thought the waiting game couldn't get any longer, the SEC delayed not one, but two decisions. Right before the second deadline, they decided to hold off on Canary Capital's proposed Hedera ETF and Grayscale's Polkadot ETF. Instead of making a ruling, they announced that they'd open the proposals to additional public commentary. Talk about a setback!
Now, these delays push the third deadline to the 9th of September, with a final ruling expected by the 8th of November. If that's not enough, the SEC has also delayed its response to the Canary Spot SUI ETF, adding even more uncertainty to the digital asset fund circuit.
Bloomberg analyst James Seyffart isn't holding his breath for any immediate approvals, predicting that the U.S. SEC is unlikely to give the green light to these pending crypto ETF applications until the fourth quarter, closer to the final deadlines later this year. Eric Balchunas agrees, stating, "Really good chance this exists at some point. First we'll get slew of active crypto ETFs (eta Winter 2025). Active memecoin-only likely 2026 tho."
Now, you might be wondering what's taking the SEC so long? Well, they've got their reasons, including the need to evaluate multiple crypto ETF applications, like those focused on Polkadot, Hedera, Solana, XRP, and even Dogecoin. They're moving slowly and methodically, at least according to recent regulatory filings.
In the meantime, Canary Capital, along with VanEck and 21Shares, has called on the Commission to reinstate the 'first-to-file' approval model. They argue that such a framework would enhance fairness and competitiveness in the ETF market. While the SEC has yet to respond, a favorable move could give Canary Capital an edge over Grayscale in launching the first Hedera ETF.
Despite the regulatory delays, the market reaction has been surprisingly muted. DOT traded at $4.30, reflecting a 4.52% gain over the past 24 hours, while HBAR saw a modest 1.65% increase, reaching $1.798.
Still, investor sentiment remains relatively stable, even as ETF decisions hang in the balance. So, grab a sandwich, kick back, and prepare for a long, wild ride. It's anyone's guess when we'll see these ETFs hit the markets. But remember, patience is a virtue, and in the world of crypto, anything is possible!
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Investors are left wondering about the potential launch of Polkadot and Hedera ETFs, as the US Securities and Exchange Commission (SEC) has requested more public input, delaying the decisions. This move could have an impact on the Defi and crypto finance industry, as ETFs can provide easier access for investors to trade digital tokens. Industrial technology advancements have made it possible for more crypto-linked investment products, such as Bitcoin, Solana, and XRP, to emerge in the market. As the SEC reviews multiple ETF applications, market participants continue to invest and follow the developments closely, eagerly awaiting the final decisions. As the third deadline approaches, investors and token holders are reminded to be patient, given the unpredictable nature of the cryptocurrency market.
