SEC Postpones Decision on Crypto ETFs as Market Responds With Price Swings

• SEC postpones decision on Hedera, Avalanche, and Dogecoin ETFs and begins formal review with public comment window.
• Crypto market reacts as SEC delays verdict on altcoin ETFs causing major price drops in AVAX HBAR and DOGE.
• SEC opens extended review process for Grayscale VanEck and Bitwise ETF proposals and invites public responses.

The U.S. Securities and Exchange Commission has postponed its decision on Grayscale’s Hedera ETF, VanEck’s Avalanche ETF, and Bitwise’s Dogecoin ETF cryptocurrency proposals. The announcement came on June 12, following official filings posted by the agency.

Each filing stated that formal proceedings are now underway to assess whether the proposed rule changes meet regulatory standards. While this step signals further review, it does not indicate any final decision. The SEC will now collect public comments over a 21-day period. Replies to those comments can be submitted within 35 days.

These proceedings follow the rising interest in altcoin-based ETFs. The SEC had earlier asked issuers of Solana ETFs to revise their S-1 forms. This is often a sign that regulatory decisions could be near. Recent trends suggest that Solana may become the first altcoin to receive spot ETF approval.

Leadership Changes and Industry Pushback

The SEC is currently undergoing leadership changes that may impact its approach. Paul Atkins became chairman on April 22. His appointment came after a three-month vacancy left by former chair Gary Gensler. Since taking over, Atkins has promised to support digital asset innovation while still enforcing compliance.

Despite this, several asset managers have voiced concerns about the approval process. Firms like VanEck, 21Shares, and Canary claim the SEC has failed to honor the “first-to-file” rule. They argue that the process lacks transparency and harms fair market competition. In a recent letter, these firms urged the agency to return to a rule-based review system.

This criticism has grown louder as some ETF applications appear to move forward faster than others. Managers say inconsistent timelines lead to added costs and lower trust among market participants.

Market Response and Outlook

The market reacted swiftly to news of the delay. Avalanche dropped 10.34% to $18.97. Its 24-hour trading volume increased by 33.34%. Hedera saw an 8.71% decline to $0.1552, with trading volume jumping 49%. Dogecoin also dropped 9.30% and now trades at $0.17.

Analysts are watching closely as the SEC’s recent actions mirror its approach to Ethereum ETFs in 2024. Back then, the agency increased engagement with issuers just before approvals were granted. A similar trend may now be unfolding.

Meanwhile, data from prediction markets show high confidence that the SEC will approve several crypto ETFs by year-end. The Trump administration has also backed clearer regulations to encourage broader institutional involvement in digital assets.