SEC Delays Hedera, Polkadot ETFs Amid Regulatory Uncertainty

SEC Delays Hedera (HBAR) and Polkadot (DOT) ETF Decisions Amid Ongoing Regulatory Scrutiny

SEC Pushes Back Hedera and Polkadot ETF Rulings: What Investors Need to Know

As the cryptocurrency market continues to mature, anticipation around exchange-traded funds (ETFs) tied to digital assets has intensified. Now, two more digital asset funds—focused on Polkadot (DOT) and Hedera (HBAR)—have joined the growing list of proposals waiting for regulatory clarity. However, the U.S. Securities and Exchange Commission (SEC) has once again chosen caution over speed, delaying its decisions and opening the proposals to further public commentary.

SEC Requests More Public Input, Delays Decisions

In a move that underscores the SEC’s ongoing hesitancy toward crypto-related investment products, the agency announced it would delay rulings on both Grayscale’s Polkadot ETF and Canary Capital’s Hedera ETF. The decision was made just ahead of the second deadline for these filings, effectively postponing any final judgment until at least September 9, with a definitive ruling expected by November 8.

Instead of issuing a clear decision, the SEC opened an extended comment period, signaling a preference for collecting broader public and industry feedback before taking a stance. This procedural delay reflects the Commission's measured approach to the evolving world of digital asset ETFs.

Third Deadline Set, But Expectations Remain Low

The SEC's delay does not come as a surprise to analysts closely monitoring the crypto ETF landscape. Bloomberg Intelligence analyst James Seyffart expressed skepticism about near-term approvals, stating that decisions on the Polkadot and Hedera ETFs are unlikely before Q4 of this year. His perspective is echoed by senior ETF analyst Eric Balchunas, who suggested that more innovative crypto ETFs—particularly active ones—could arrive in Winter 2025, while niche products like memecoin-only ETFs might take even longer, possibly into 2026.

These forecasts paint a sobering picture for investors hoping for short-term regulatory breakthroughs. The likelihood of further delays remains high, especially with Grayscale’s HBAR ETF facing its own second deadline on June 15.

First-Mover Advantage: Canary vs. Grayscale

Currently, Grayscale is the sole applicant for a Polkadot ETF, while both Grayscale and Canary Capital have filed for Hedera-based ETFs. Notably, Canary submitted its application before Grayscale, raising questions about potential first-mover advantages if the SEC returns to a “first-to-file” approval strategy.

Canary Capital, along with other asset managers like VanEck and 21Shares, has publicly urged the SEC to revive the first-to-file approval framework. Proponents argue that this model ensures fairness and promotes competitiveness in the ETF space by rewarding early initiative. A favorable decision on this front could give Canary a strategic edge in being the first to launch a Hedera ETF, should approvals eventually be granted.

Delays Extend to Other Crypto ETFs

The SEC’s caution isn’t limited to Hedera and Polkadot ETFs. In parallel, the agency has also delayed its decision on the Canary Spot SUI ETF, further underscoring its reticence to greenlight new digital asset investment vehicles. These cumulative delays deepen the uncertainty surrounding the future of crypto ETFs, even as investor interest continues to grow.

Industry Experts Call for Clarity

SEC Delays Fidelity Spot Solana ETF Amid Regulatory Overhaul

Industry leaders and ETF analysts alike have grown increasingly vocal in calling for regulatory transparency. Many argue that the SEC’s prolonged hesitancy stifles innovation and impedes institutional adoption of digital assets. The crypto community is particularly eager for more decisive action, especially following the earlier approval of Bitcoin futures ETFs and more recently, Ethereum spot ETFs, which set important precedents.

While cautious regulation is crucial to investor protection, stakeholders believe that excessive delays could cause the U.S. to fall behind in global financial innovation.

DOT and HBAR Market Reactions Remain Muted

Despite the regulatory indecision, price action for both DOT and HBAR has remained relatively stable—an indication that the market had already priced in potential delays. At the time of reporting:

Polkadot (DOT) was trading at $4.30, showing a 4.52% gain in the past 24 hours.
Hedera (HBAR) saw a more modest 1.65% increase, reaching $1.798.

This muted response suggests that investor sentiment around these tokens remains largely resilient, even as ETF decisions remain in limbo.

The Bigger Picture: ETFs and the Future of Crypto Adoption

While the SEC’s cautious stance may appear frustrating to some, it’s worth recognizing the broader implications. Approval of ETFs linked to emerging blockchain networks like Hedera and Polkadot would signal a major step toward mainstream adoption. It would also provide investors with regulated exposure to high-potential projects that offer unique use cases—Polkadot with its multi-chain interoperability, and Hedera with its enterprise-grade public ledger technology.

In this context, ETF approval could serve as a catalyst for long-term institutional investment, offering traditional investors a gateway to these ecosystems without requiring direct token ownership or interaction with crypto-native platforms.

Key Takeaways

The SEC has delayed its decisions on Hedera and Polkadot ETFs, extending the timeline for public commentary and pushing final decisions closer to November 2025.
Grayscale and Canary Capital are both vying to launch the first Hedera ETF, with Grayscale also pursuing a Polkadot ETF.
Canary, VanEck, and 21Shares have urged the SEC to reinstate the 'first-to-file' model, potentially giving earlier applicants a competitive advantage.
Market reactions to the news were subdued, with both DOT and HBAR seeing modest gains despite the delays.
Analysts don’t expect approvals until late 2025, with a broader rollout of active crypto ETFs potentially arriving in 2026 or beyond.

Looking Ahead

While the path to ETF approval for Hedera and Polkadot remains uncertain, one thing is clear: institutional interest in digital assets is not going away. As regulatory frameworks slowly evolve, the role of ETFs will likely become central in shaping how both retail and professional investors gain exposure to the next generation of blockchain technologies.

For now, all eyes remain on the SEC—and on September 9 and November 8, the dates that may finally determine whether Hedera and Polkadot will join the ranks of ETF-approved digital assets.