The U.S. Securities and Exchange Commission (SEC) has extended its review of the Canary spot Hedera (HBAR) exchange-traded fund (ETF). According to filings, the regulator will now decide by November 8 whether to approve or deny the application.
The ETF, which was submitted by Nasdaq in February and amended in March, aims to track the spot price of HBAR. The SEC delayed its decision twice, in April and June, citing the need for more public input. The latest extension adds 60 additional days to the timeline, the final deadline under the 180-day review period.
Market watchers note that the SEC’s repeated delays reflect its cautious stance on altcoin-based ETFs. Bloomberg analysts, however, still put the odds of approval at 90%, signaling optimism that altcoin ETFs could soon join the growing list of regulated crypto products. Following the update, HBAR was trading at $0.2206, up 1% in the last 24 hours. The token’s trading range was between $0.2174 and $0.2222, with steady market activity.
SEC Extends Review of Grayscale’s Polkadot ETF
In addition to HBAR, the SEC also moved its deadline for the Grayscale Polkadot (DOT) ETF, coinciding with its new deadline following the HBAR decision on November 8. Similar to HBAR, the DOT ETF has already experienced delays in April and June.
The filing reveals that the SEC plans to grant %Polkadot (CRYPTO: $DOT) an additional amount of time to assess whether it can be listed under Nasdaq’s commodity-based trust rules. The regulator has not yet approved any altcoin-based spot ETFs, making the upcoming deadline a critical one for both DOT and HBAR.
Polkadot’s token responded positively, nearly rising 4% to $4.03 in the last 24 hours. Intraday trading showed lows at $3.85 and highs at $4.08. Trading volume increased by over 225%, indicating heightened interest among investors in the SEC’s decision.
What’s next for Altcoin ETFs?
While Bitcoin and Ethereum ETFs have gained significant traction, altcoin ETFs still exist in regulatory limbo. Concerns about market manipulation, liquidity, and investor protection drive the SEC’s cautious approach. Still, momentum is growing for wider approval.
Exchanges, such as %Nasdaq (NASDAQ: $NDAQ), NYSE, and CBOE BZX, have filed amendments to their listing standards, eliminating language that barred certain commodities from being considered such. These amendments are intended to help streamline the process for listing crypto ETFs, indicating closer coordination between regulators and exchanges.
If approved, the HBAR and DOT ETFs would expand investor access to altcoin exposure in traditional markets. Their approval could also set a precedent for other altcoin-focused funds waiting in the pipeline.
