The United States Securities and Exchange Commission (SEC) has continued postponing decision-making on spot crypto ETFs. In the past 24 hours, the SEC delayed the decision to either approve or deny listing and trading of shares of Grayscale Hedera Trust (HBAR).
The agency also made a similar decision on VanEck Avalanche ETF and Bitwise Dogecoin ETF. According to the respective filing, the agency will be instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
In the next 21 days, the SEC will be accepting written reviews from the public to determine whether the proposed rule changes meet all the regulatory requirements. Additionally, the agency has given any individual seeking to file a rebuttal upto 35 days.
When Will the SEC Approve More Crypto Spot ETFs
According to market data from Polymarket, the chances that the U.S. SEC gets to approve several crypto ETFs before the end of this year remains high. Moreover, the Donald Trump administration has made deliberate efforts to provide clear crypto regulations and enable the mainstream adoption of digital assets by institutional assets.
Earlier this week, Eric Balchunas, a senior analyst at Bloomberg, predicted that a potential altcoin ETF summer is on the horizon. Balchunas highlighted that Solana (SOL) will likely lead in spot ETF approvals. Furthermore, the SEC has been engaging the fund managers seeking to offer spot SOL ETFs in a similar manner to last year’s spot Ether ETF issuers.
Market Impact
The continued delays by the SEC on spot crypto ETFs have frustrated investors waiting for the much-anticipated altcoin summer in 2025. Furthermore, the wider crypto market cap dropped over 5 percent to hover about $3.44 trillion at the time of this writing.
As a result, more than $642 million was liquidated from the crypto leveraged market, with the majority involving long traders.
