Jakarta, Pintu News – The U.S. Securities and Exchange Commission (SEC) has recently announced a postponement in its decision regarding the Exchange-Traded Funds (ETFs) for Polkadot and Hedera. This delay comes just ahead of the impending second deadline for both funds, which is set for the following day. The SEC has requested further comments on the filings, indicating that a decision on approval or rejection remains pending.
SEC Postpones Decision
The SEC’s recent announcement confirms that it has postponed its decision on the Hedera ETF application submitted by Canary Capital. This delay is occurring right before the second deadline for the submission. Instead of issuing an approval or denial, the SEC has opted to seek additional comments related to this application. A similar situation has arisen with Grayscale’s Polkadot ETF filing.
Market Predictions and Responses
Delays concerning spot crypto ETFs are anticipated within the market. There are multiple XRP ETP deadlines approaching in the coming days. According to Bloomberg analyst James Seyffart, if any early approvals from the SEC are to be expected for these assets, they are unlikely to occur until late June or early July at the very earliest, with a higher probability of approvals arriving in early Q4. This suggests that the SEC may wait until the last deadline to make a decision regarding the Polkadot and Hedera ETFs. Notably, Grayscale is the sole issuer for the Polkadot ETF, while both Canary Capital and Grayscale are involved in the Hedera ETF application, with Canary having submitted their application prior to Grayscale. The second deadline for the Grayscale ETF is set for June 15, and it is probable that the SEC will also delay a decision on this fund.
Competition and the ‘First-to-File’ Principle
Recently, Canary Capital, alongside Van ECK and 21Shares, has urged the SEC to re-establish the ‘first-to-file’ principle for ETF approvals. These crypto ETF issuers contend that reinstating this principle would foster a more competitive and dynamic financial landscape. As of now, the SEC has yet to respond to this letter. If the SEC were to agree with this request, it could provide Canary with a competitive advantage over Grayscale concerning their Hedera ETF, highlighting an intriguing competitive dynamic within the crypto ETF sector.
Conclusion
The SEC’s decision to delay its ruling reflects a cautious approach to regulating financial products associated with cryptocurrency. By requesting further comments, the SEC aims to ensure that every element has been thoroughly evaluated before granting approval. This caution is vital for maintaining market integrity and safeguarding investors from potential risks.
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