SEC delays decision on 70 crypto ETFs

The US Securities and Exchange Commission (SEC) has postponed its decision on the approval of a proposed exchange-traded fund (ETF) that holds Polkadot’s (CRYPTO:DOT) native token, DOT.

According to a regulatory filing dated April 24, the SEC extended the deadline for a final ruling to June 11.

This marks nearly four months after Nasdaq requested permission on February 24 to list the Grayscale Polkadot Trust.

Grayscale’s filing is part of a larger group of approximately 70 crypto-related ETFs awaiting SEC approval.

These proposed funds cover a wide range of digital assets, including altcoins, memecoins, and crypto derivatives.

Bloomberg Intelligence analyst Eric Balchunas noted on April 21 that asset managers are pitching ETFs for “everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between.”

Another asset manager, 21Shares, is also seeking approval for its own Polkadot ETF.

Polkadot is a layer-1 blockchain network launched in 2020, with its native token DOT valued at around $4.30 and a market capitalisation near $6.6 billion as of April 24, according to CoinMarketCap.

Grayscale already manages several crypto funds, including spot Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) ETFs, and is pursuing ETFs for tokens such as Solana (CRYPTO:SOL), Litecoin (CRYPTO:LTC), XRP (CRYPTO:XRP), Dogecoin (CRYPTO:DOGE), and Cardano (CRYPTO:ADA).

The surge in proposed crypto ETFs coincides with a March report from Coinbase and EY-Parthenon showing over 80% of institutional investors plan to increase crypto allocations in 2025.

However, analysts caution that demand for altcoin ETFs may be lower compared to funds focused on major cryptocurrencies like Bitcoin and Ether.

Balchunas compared ETF inclusion to “being in a band and getting your songs added to all the music streaming services,” adding that it “doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”