The U.S. Securities and Exchange Commission (SEC) has hit the pause button on several crypto exchange-traded fund (ETF) proposals, putting approval in doubt.
According to filings published this week, the SEC is delaying its decision for three ETF proposals, including Dogecoin, Hedera, and Avalanche.
The ETFs, filed respectively by Bitwise, Grayscale, and VanEck earlier this year, aim to launch spot ETFs backed directly by DOGE (DOGE), HBAR (HBAR), or AVAX (AVAX), which would offer investors regulated access to the assets if approved.
However, the SEC stated it needs more time to assess the proposals. Citing concerns around investor protection and market integrity, the regulatory commission noted it is opening proceedings to allow for further analysis of whether the ETFs meet legal standards.
“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved,” the releases read. “Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
While not an outright rejection, the SEC’s move contrasts sharply with industry expectations. Earlier this week, Bloomberg analyst James Seyffart placed odds of approval for each of the assets around 75% to 80%, fueled by reports of positive engagement among the commission and issuers.
https://twitter.com/jseyff/status/1932538161260802070?s=46
The regulatory decision quickly rippled through the markets, dampening investor sentiment and triggering a sell-off across the three tokens. AVAX recorded the biggest loss, falling 12.5% from around $21.25 to $18.60 in a matter of hours. HBAR followed with an 11.5% slide, dropping from $0.1708 to $0.1512.
Despite being the least affected of the three, DOGE also dropped significantly, shedding 10.2% from $0.1906 to $0.1711. While all three tokens have shown minor recoveries since the initial dip, they remain in the red as uncertainty around ETF approval lingers.
