Why SEC delayed its Polkadot, Hedera ETF decisions, and what’s next

• SEC delays Polkadot and Hedera ETFs, seeking more public input.
• Analysts foresee crypto ETF approvals in Q4 2025, not sooner.

As anticipation builds around several crypto ETF applications awaiting regulatory clarity, two more digital asset funds, focused on Polkadot [DOT] and Hedera [HBAR], have now entered the spotlight.

Hedera, Polkadot ETF decisions delayed

The U.S. Securities and Exchange Commission (SEC) has issued a fresh statement requesting additional public input on these proposals, effectively postponing its decision past the upcoming second deadline.

This move signals the agency’s continued cautious approach to crypto-linked investment products, even as market participants await definitive approval timelines.

Right before the second deadline, the SEC chose to delay its decision on Canary Capital’s proposed Hedera ETF and Grayscale’s Polkadot ETF.

Instead of issuing a ruling, the agency announced it would open the proposals to additional public commentary.

These delays push the third deadline to the 9th of September, with a final ruling expected by the 8th of November.

In a similar move, the SEC has also delayed its response to the Canary Spot SUI ETF, deepening the uncertainty surrounding the future of these digital asset funds.

What are analysts anticipating?

Bloomberg analyst James Seyffart has indicated that the U.S. SEC is unlikely to approve the pending crypto ETF applications in the near term.

According to Seyffart, green lights for the proposed Polkadot and Hedera ETFs might not arrive until the fourth quarter, closer to their respective final deadlines later this year.

In fact, Eric Balchunas also believes the same –

“Really good chance this exists at some point. First we’ll get slew of active crypto ETFs (eta Winter 2025). Active memecoin-only likely 2026 tho.”

For context, Grayscale remains the sole applicant for a Polkadot ETF, while both Grayscale and Canary Capital are pursuing HBAR ETFs, though Canary submitted its application first.

With the second deadline for Grayscale’s HBAR ETF approaching on the 15th of June, another delay from the SEC appears likely.

Suggestions for the SEC

In the meantime, Canary Capital, along with VanEck and 21Shares, has called on the Commission to revive the ‘first-to-file’ approval model, arguing that such a framework would enhance fairness and competitiveness in the ETF market.

While the SEC has yet to address the industry’s appeal to reinstate the ‘first-to-file’ rule, a favorable response could give Canary Capital an edge over Grayscale in launching the first Hedera ETF.

Price action of DOT and HBAR

However, despite the regulatory delays and ongoing discussions, the market reaction remained muted.

For instance, DOT traded at $4.30, reflecting a 4.52% gain over the past 24 hours, while HBAR saw a modest 1.65% increase, reaching $1.798.

This indicates that investor sentiment around these tokens remains relatively stable, even as ETF decisions hang in the balance.