The U.S. Securities and Exchange Commission (SEC) has postponed rulings on proposed spot exchange-traded funds (ETFs) tied to Dogecoin (DOGE), Hedera (HBAR), and Avalanche (AVAX). Applications submitted by asset managers Bitwise, Grayscale, and VanEck will undergo extended legal review, with the SEC citing unresolved concerns regarding investor protection mechanisms and market integrity.
The delay triggered immediate market repercussions, leading to notable price declines within hours of the announcement. AVAX dropped over 12%, HBAR fell 11.5%, and DOGE declined 10.2% as uncertainty spread among investors regarding the funds’ approval prospects.
The SEC characterized the postponement as a standard procedural requirement, emphasizing the need for additional evaluation time. The regulator has opened a public commentary period to solicit feedback on proposed safeguards and market surveillance frameworks associated with the altcoin ETFs.
Industry analysts note the development departs from earlier predictions estimating a 75-80% approval likelihood. The deferral highlights the persistent unpredictability of cryptocurrency regulatory decisions despite rising mainstream institutional interest in such products.
This cautious approach toward altcoin-based ETFs may establish a precedent for future applications. Observers anticipate enhanced compliance requirements, including rigorous market oversight protocols and clearer custody solutions, for similar proposals moving forward.