The US Securities and Exchange Commission has delayed its decision on the proposed Polkadot ETFs.
The SEC, in its filings, pointed out the need for "additional time" to consider the proposals, with feedback from the public.
Grayscale’s Polkadot ETF is only one of 72 other crypto-related ETF proposals on the SEC’s desk.
An ETF getting listed doesn't mean that investors will become automatically interested.
Polkadot and other altcoins in the ETF pipeline could see a green light from the SEC at some point. However, for now, it is still a waiting game.
The US Securities and Exchange Commission has delayed its decision on the proposed Polkadot ETFs.
This move from the SEC has now added this and many other applications to the growing list of ETFs awaiting regulatory approval.
So far, interest in altcoin-based ETFs has been surging lately, especially with the approvals of similar products with Bitcoin and Ethereum in January and June of last year.
The SEC announced on 24 April that it was extending its review period for several crypto ETFs, including Grayscale’s proposal to convert its Polkadot Trust into a spot ETF.
The new deadline for the final decision with these products has now been pushed to 11 June.
More delayed ETFs include the agency’s decision on Canary Capital’s spot ETF for Hedera (HBAR), as well as Bitwise’s joint Bitcoin and Ethereum ETF (which will now be reviewed by June 10).
The SEC, in its filings, pointed out the need for "additional time" to consider the proposals, with feedback from the public.
These delays, while painful to wait through, are a necessary part of the agency’s regulatory process as it grapples with the growing list of ETF submissions.
Grayscale’s Polkadot ETF is only one of 72 other crypto-related ETF proposals on the SEC’s desk.
This growing list of applications includes everything from single-token funds, multi-asset offerings, and even ETFs linked to memecoins and exotic assets.
According to Bloomberg Intelligence analyst Eric Balchunas, asset managers have filed applications for almost every class of product from XRP, Solana, and Litecoin to tokens like Dogecoin and even "2x Melania."
Grayscale itself has filed for ETFs tied to Cardano and Dogecoin, alongside its already-approved Bitcoin and Ethereum funds.
21Shares, another asset manager, has also submitted a request to list its own Polkadot ETF.
This surge in filings comes after a major shift in the SEC’s regulatory approach, especially with Donald Trump’s administration.
The agency has so far done everything from hosting public roundtables to an upcoming session for discussing crypto custody frameworks.
Balchunas presented a useful analogy in a separate post.
He said “Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services. Doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”
In other words, an ETF getting listed doesn't mean that investors will become automatically interested.
However, it does provide the means for the product to experience adoption at scale.
This comes in line with a recent report from Coinbase and EY-Parthenon, which showed that over 80% of institutional investors plan to increase their crypto allocations this year.
This creates a strong narrative for fund managers to diversify their offerings beyond just Bitcoin and Ethereum.
Still, investor appetite for altcoin ETFs appears gloomy, especially with institutions generally preferring assets with deep liquidity and regulatory clarity (both of which are areas where altcoins still lag)
Overall, Polkadot and other altcoins in the ETF pipeline could see a green light from the SEC at some point.
However, for now, it is still a waiting game.
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