SEC Postpones Decisions on Polkadot and Hedera ETFs Amid Growing Crypto Fund Backlog
The United States Securities and Exchange Commission (SEC) has extended its decision deadlines for two crypto exchange-traded fund (ETF) proposals tied to Polkadot (DOT) and Hedera (HBAR), as the agency continues to navigate an expanding pipeline of digital asset fund applications.
New Deadlines Set for June
In a filing released on Thursday, the SEC announced it would push its ruling on Grayscales proposal to convert its Polkadot Trust into a spot Polkadot ETF to June 11. A similar extension was granted to Canary Digitals application for a Hedera (HBAR) ETF, with the same deadline. Both proposals were initially expected to receive a decision by the end of this week.
The SEC also delayed a decision on another high-profile application the Bitwise Bitcoin and Ethereum ETF setting a new date of June 10 for that filing.
Citing Need for Thorough Review
The regulatory body justified the delays by emphasizing the need for additional time to properly evaluate the proposed rule changes and address issues raised in the applications.
In its filing for the Hedera ETF, the SEC noted,
The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change, as modified by Amendment No. 1, so that it has sufficient time to consider the proposed rule change and the issues raised therein.
This cautious, measured approach reflects a broader pattern in the SECs treatment of crypto-related financial products as it works to balance market innovation with investor protection and regulatory oversight.
Increasing Scrutiny Under New Leadership
The delay is occurring during a period of heightened regulatory scrutiny under SEC Chair Paul Atkins. Since assuming office, Atkins has overseen a backlog of over 70 crypto ETF applications, ranging from large-cap assets like XRP and Solana to meme-themed funds and leveraged products. Industry observers say the agency is contending with an unprecedented volume of applications amid growing institutional and retail interest in crypto-based investment vehicles.
Applications for both the Grayscale Polkadot Trust and the Canary HBAR ETF were submitted in February, part of a wave of new filings following President Trumps inauguration.
A Crowded and Diverse ETF Queue
Industry analysts have remarked on the diverse and sometimes unconventional nature of the current ETF backlog. Bloombergs Eric Balchunas described the ongoing queue as wild, noting the inclusion of products based on everything from major altcoins to novelty funds referencing Penguins, Doge, and 2x Melania.
While the crypto industry had anticipated a friendlier regulatory climate in 2025, delays like these indicate that the SEC remains cautious in its evaluation process. The next agency roundtable on digital assets, scheduled for Friday, is expected to focus on crypto custody another critical issue influencing the fate of pending crypto ETFs.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
Text source: Crypto Daily™
