SEC Delays Grayscale Spot HBAR ETF Decision

Grayscale Investments’ application for a spot Hedera (HBAR) ETF has encountered a delay from the U.S. Securities and Exchange Commission (SEC), continuing its cautious stance as of June 13, 2025.

The SEC’s extended review of Grayscale’s HBAR ETF application affects institutional investors and signals ongoing regulatory caution.

The SEC has begun proceedings to review Grayscale’s proposed spot Hedera (HBAR) ETF, a process historically marked by extended scrutiny. Such action maintains the regulatory body’s pattern of caution in crypto ETF approvals. Public commentary has been invited to evaluate the application thoroughly, highlighting the SEC’s standard procedural approach.

Grayscale Investments, famous for its digital asset investment products, is under CEO Michael Sonnenshein’s leadership. The SEC, prioritizing investor protection, is yet to arrive at a firm conclusion on the application. The process could influence not only HBAR but similar assets like Dogecoin and Avalanche.

“The SEC’s decision to seek public comments exemplifies the ongoing scrutiny and complexity surrounding spot ETF approvals in the crypto space.” — Michael Sonnenshein, CEO, Grayscale Investments.

The delay in decision-making presents a pause in institutional capital flow toward HBAR, emphasizing the market’s cautious posture due to regulatory hesitation. Such actions previously impacted Bitcoin and Ethereum ETFs. While on-chain analytics haven’t indicated immediate liquidity and staking changes, market sentiment remains observant of future trends.

Historical precedents show that similar SEC actions prolonged processes for Bitcoin and Ethereum ETFs. These delays often entail uncertainty but can lead to higher asset valuations post-approval. For now, the crypto market holds its breath, with possible broader implications for altcoins.

Senior analysts anticipate a surge in altcoin ETF approvals once the review window concludes. Grayscale’s spot Hedera ETF submission remains a focal point. Supporters speculate that if regulatory approval materializes, it could catalyze substantial institutional investment, benchmarking against earlier blue-chip ETFs.