The U.S. Securities and Alternate Fee (SEC) has as soon as once more delayed its choice on whether or not to approve two proposed cryptocurrency exchange-traded funds (ETFs) based mostly on Polkadot (DOT) and Hedera (HBAR).
In response to the filing, the company finds it “acceptable to designate an extended interval inside which to take motion on the proposed rule change… in order that it has ample time to think about the proposed rule change and the problems raised therein.”
In brief, the SEC is saying it wants extra time to assessment the ETF proposal and collect feedback from the general public earlier than giving a closing choice. The company was anticipated to decide by June 11 however has now prolonged its assessment interval.
In proposals, Grayscale is looking for to transform its Polkadot Belief into an ETF, whereas Canary Capital needs to listing and commerce shares of its Canary HBAR ETF on Nasqaq. Each fillings had been initially submitted in February 2025.
The SEC’s delay means each proposals now transfer to a later stage within the approval course of, often known as proceedings to find out approval or disapproval. This stage permits the company to gather extra information and public enter earlier than making its closing name.
In response to the proposal, Canary’s proposed ETF would maintain Hedera’s native token, HBAR, and money. Its worth could be tracked utilizing the CoinDesk Hedera USD CCIX 30min NY Charge, a benchmark based mostly on costs from main crypto buying and selling platforms. Shares of the ETF could be created or redeemed in blocks of 10,000 and may very well be purchased or offered utilizing both money or in-kind transactions.
That is the second deadline extension for each filings. The SEC can delay its choice as much as 4 instances earlier than reaching a closing verdict. The following main deadline for the ETFs falls on September 9, 2025.
In the meantime, Canary and Grayscale, together with different crypto ETF candidates, have lately urged the SEC to undertake a “first-to-file”, first to approve” strategy. They argue that this is able to promote equity and competitors by giving precedence to early filers.
As of now, the SEC has not responded to that request. But when it does undertake the precept, Canary’s HBAR ETF, being the primary filed might achieve an edge over Grayscale’s later utility.
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