SEC Delays Decisions on Bitwise Dogecoin and Grayscale Hedera ETFs

According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has postponed its decisions on the Bitwise Dogecoin ETF and the Grayscale Hedera ETF, extending the review period for both applications until November 12. This delay affects NYSE Arca's proposal to list the Bitwise Dogecoin ETF, which was initially filed in March and entered the statutory review phase on March 17. On the same day, the SEC also extended its review of Grayscale's application to list the Hedera ETF, aligning both deadlines. Grayscale has updated its filings for its Litecoin and Bitcoin Cash trusts, aiming to convert them into exchange-traded funds (ETFs). Transitioning these trusts to a national exchange would facilitate daily share creations and redemptions, aligning prices more closely with net asset value and mitigating the significant premiums and discounts observed in over-the-counter (OTC) trading. This move follows Grayscale's precedent set in 2024 when it successfully converted the Grayscale Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF after a legal battle with the SEC. The company now seeks to apply this model to Bitcoin Cash (BCH) and Litecoin (LTC). The SEC's delays underscore the uncertain trajectory for altcoin ETFs amid a surge in applications in 2025, resulting in a growing backlog. By July 31, at least 31 altcoin spot-ETF applications had been submitted in the first half of the year, including proposals for XRP, Dogecoin, Solana, Litecoin, Avalanche, and BNB. As of August 29, there were at least 92 crypto-related ETF products awaiting SEC decisions, with notable institutional interest in Solana (SOL) and XRP, evidenced by eight and seven applications, respectively. Typically, the SEC utilizes the full duration of its review periods, often extending deadlines rather than issuing early approvals or rejections. In August, the SEC postponed several crypto ETF filings, 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. On August 25, the agency extended its review of Cboe BZX's proposal to list the WisdomTree XRP Fund, setting October 24 as the new deadline, and delayed its decision on the Canary PENGU ETF to October 12.