SEC Delays Decision on HBAR and Polkadot ETFs Until November

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The U.S. Securities and Exchange Commission (SEC) has once again hit pause on two altcoin ETF filings, Canary’s Hedera (HBAR) ETF and Grayscale’s Polkadot (DOT) ETF. While the crypto community eagerly awaits approval, the regulator is buying more time, pointing to broader listing rules as the key hurdle. 

Despite the delay, both tokens are holding strong. HBAR is up about 1.8% this week, and Polkadot’s trading volume surged 225%, showing traders are interpreting the delay as procedural rather than a rejection.

SEC Extends the Clock

As per the filings, the SEC has designated an additional 60 days to review both applications, setting November 8 as the final deadline for a decision. This marks the third delay since March, after earlier extensions in April and June.

For the Canary HBAR ETF, Nasdaq initially filed in February, later amending it in March. The SEC has since asked for multiple rounds of public comments, questioning whether the product can be listed under Nasdaq’s commodity-based trust shares rule. Grayscale’s Polkadot ETF faces a nearly identical timeline and delay pattern.

Why the Delay?

The delays are less about the tokens themselves and more about the Generic Listing Standards for spot crypto ETFs. The SEC wants a clear, uniform framework before it greenlights ETFs beyond Bitcoin and Ethereum.

As reported earlier, major exchanges, Nasdaq, NYSE, and CBOE BZX, have already submitted amendments to adjust the definition of “commodity” by removing “excluded commodities,” a move that would smooth the path for broader crypto ETF approvals. In short, the SEC seems to be waiting until the standards are in place before allowing any altcoin-based ETFs.

Market Reactions Stay Positive

Interestingly, both tokens shrugged off the news. HBAR rose 1%, trading around $0.22, while Polkadot surged nearly 4% to $4.03, with trading volume spiking more than 225% in 24 hours. This suggests investors remain optimistic that approval is coming, with Bloomberg analysts still pegging 90% odds of eventual approval.

The upside reaction reflects broader market confidence in spot crypto ETFs after Bitcoin’s success in securing approval earlier this year. Traders seem to be betting that once the SEC finalizes listing standards, HBAR, DOT, and other altcoins could be next in line.

The Bigger Picture

While the wait drags on, the message is clear: the SEC is laying groundwork for a standardized ETF framework, not ruling out altcoins. For now, November 8 is circled on the calendar, but the crypto market is already pricing in a favorable outcome.

If HBAR and Polkadot do get the green light, it won’t just be about these two tokens; it could signal the start of a new wave of altcoin ETFs.