The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on whether to approve two proposed cryptocurrency exchange-traded funds (ETFs) based on Polkadot (DOT) and Hedera (HBAR).
According to the filing, the agency finds it “appropriate to designate a longer period within which to take action on the proposed rule change… so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
In short, the SEC is saying it needs more time to review the ETF proposal and gather comments from the public before giving a final decision. The agency was expected to make a decision by June 11 but has now extended its review period.
In proposals, Grayscale is seeking to convert its Polkadot Trust into an ETF, while Canary Capital wants to list and trade shares of its Canary HBAR ETF on Nasqaq. Both fillings were initially submitted in February 2025.
The SEC’s delay means both proposals now move to a later stage in the approval process, known as proceedings to determine approval or disapproval. This stage allows the agency to collect more data and public input before making its final call.
According to the proposal, Canary’s proposed ETF would hold Hedera’s native token, HBAR, and cash. Its value would be tracked using the CoinDesk Hedera USD CCIX 30min NY Rate, a benchmark based on prices from major crypto trading platforms. Shares of the ETF would be created or redeemed in blocks of 10,000 and could be bought or sold using either cash or in-kind transactions.
This is the second deadline extension for both filings. The SEC can delay its decision up to four times before reaching a final verdict. The next major deadline for the ETFs falls on September 9, 2025.
Meanwhile, Canary and Grayscale, along with other crypto ETF applicants, have recently urged the SEC to adopt a “first-to-file”, first to approve” approach. They argue that this would promote fairness and competition by giving priority to early filers.
As of now, the SEC has not responded to that request. But if it does adopt the principle, Canary’s HBAR ETF, being the first filed could gain an edge over Grayscale’s later application.
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