SEC Extends Review of Bitwise Dogecoin and Grayscale Hedera ETF Applications
The U.S. Securities and Exchange Commission (SEC) has postponed its decisions on two prominent altcoin exchange-traded fund (ETF) applications, extending the review period for both the Bitwise Dogecoin ETF and the Grayscale Hedera ETF until November 12, 2025.
On Tuesday, the SEC pushed back the deadline for NYSE Arca’s proposal to list the Bitwise Dogecoin ETF. This application, initially filed in March and published in the Federal Register on March 17, began its statutory review period at that time. The agency simultaneously extended its review of Grayscale’s Hedera Hashgraph ETF application, aligning the deadline for both products.
Grayscale Seeks to Convert Litecoin and Bitcoin Cash Trusts into ETFs
In addition to the Hedera ETF, Grayscale has updated its filings to convert its Litecoin (LTC) and Bitcoin Cash (BCH) investment trusts into ETFs. This transition from trusts to nationally listed ETFs would enable daily share creations and redemptions, facilitating better price alignment with underlying asset values and minimizing the significant premiums and discounts often seen in over-the-counter (OTC) trading.
Grayscale set a precedent earlier this year by successfully converting its Grayscale Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF after a protracted legal challenge with the SEC. The firm now aims to replicate this model for Litecoin and Bitcoin Cash.
SEC Faces Growing Backlog of Altcoin ETF Applications
The surge in altcoin ETF filings in 2025 has created a substantial backlog for the SEC. As of July 31, at least 31 spot altcoin ETF applications were submitted during the first half of the year, covering assets such as XRP, Dogecoin, Solana, Litecoin, Avalanche, and Binance Coin (BNB).
By August 29, the number of crypto-related ETF products awaiting SEC decisions had risen to at least 92. Institutional demand is particularly notable for Solana, which has eight pending applications, and XRP, with seven.
In recent months, the SEC has consistently utilized the full duration of its review periods, opting to extend deadlines rather than issuing early approvals or rejections. For instance, in August, several crypto ETF filings were delayed, including NYSE Arca’s Truth Social Bitcoin and Ethereum ETF to October 8, the 21Shares and Bitwise Solana ETFs to October 16, and the 21Shares Core XRP Trust to October 19. Other extended reviews include the WisdomTree XRP Fund and the Canary PENGU ETF, with new deadlines set for late October and early October respectively.
Outlook
This pattern of prolonged reviews underscores the SEC’s cautious approach amid evolving regulatory frameworks for cryptocurrency ETFs, particularly those involving altcoins. Market participants will be closely monitoring the November 12 deadlines for the Bitwise Dogecoin and Grayscale Hedera ETFs, as well as ongoing developments in the broader altcoin ETF approval landscape.
FinOracleAI — Market View
The SEC’s continued delays in approving altcoin ETFs maintain regulatory uncertainty, likely tempering near-term market enthusiasm for these products. The backlog signals cautious scrutiny, particularly for newer altcoin-based ETFs, which may prolong the timeline for institutional adoption via regulated vehicles.
Risks include potential further extensions or rejections, which could dampen investor sentiment. However, successful approvals, especially following Grayscale’s precedent with spot Bitcoin ETFs, may unlock significant demand and liquidity for altcoin ETFs in the medium term.
Investors should watch for the November 12 decisions and any accompanying regulatory guidance that could clarify the SEC’s stance on altcoin ETFs.
Impact: neutral
