SEC Delays Decision on crypto ETF Proposals
The U.S.Securities and Exchange Commission (SEC) has postponed its decision on several crypto ETF proposals. This move has cast doubt on their approval.
According to recent filings, the SEC is delaying its decision on three ETF proposals. These include Dogecoin, Hedera, and Avalanche. Bitwise, Grayscale, and VanEck filed these proposals earlier this year. The ETFs aim to offer investors regulated access to DOGE, HBAR, and AVAX if approved.
However, the SEC needs more time to assess these proposals. They cited concerns about investor protection and market integrity. The commission is opening proceedings for further analysis to see if the ETFs meet legal standards.
While this isn’t a rejection, it contrasts with industry expectations. Earlier,Bloomberg analyst James Seyffart placed approval odds at 75% to 80%. this was due to positive engagement between the commission and issuers.
The SEC’s decision quickly affected the markets. It dampened investor sentiment and triggered a sell-off across the three tokens. AVAX saw the biggest loss, falling 12.5% from $21.25 to $18.60. HBAR followed with an 11.5% slide, dropping from $0.1708 to $0.1512. DOGE also dropped substantially, shedding 10.2% from $0.1906 to $0.1711.
While all three tokens have shown minor recoveries, they remain in the red. Uncertainty around ETF approval continues to linger.
