- Grayscale faces delay in ETF approval by SEC.
- SEC opens for public comments within 21 days.
- Potential impacts on Hedera and other altcoin markets.
The postponement signals continued regulatory caution, leading to uncertainty in the Hedera market. SEC’s request for public comments within 21 days indicates openness to input before finalizing.
Regulatory Delays Affecting Grayscale’s Hedera ETF
Grayscale Investments’ recent move to establish a spot Hedera ETF has faced a regulatory delay by the SEC, which is inviting public comments on the proposal. Grayscale, known for crypto trusts, partnered with Coinbase Custody as the asset custodian.
Institution of proceedings does not indicate that the Commission has reached any conclusion with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.
– Michael Sonnenshein, CEO, Grayscale Investments
Multiple parties, including Canary Capital, are affected by the SEC’s postponement. This follows similar trends seen with previous cryptocurrency ETFs, as the commission—withholding conclusive judgments—moves cautiously in the crypto landscape.
The affected assets like HBAR, Dogecoin, and Avalanche observe instabilities due to the delay, with potential implications on market stability. The SEC’s historical patterns show regulatory assessments can prolong market anticipation, sometimes prompting bullish speculation post-approval.
Experts, including Bloomberg’s Eric Balchunas, predict a future where altcoin ETF approvals might be more frequent as regulatory clarity improves. The decision-making process for crypto ETFs tends to see thorough evaluations, as witnessed in the prior cases of Bitcoin and Ethereum ETFs. The market reactions, although speculative, remain closely watched by stakeholders.
