- SEC extends ETF reviews as backlog grows, with 92 crypto products awaiting rulings.
- Coinbase named custodian and BNY Mellon administrator for Grayscale ETFs.
- Grayscale seeks to convert Bitcoin Cash and Litecoin trusts into ETFs on NYSE Arca.
The SEC has delayed decisions on Grayscale’s filings to convert its Bitcoin Cash, Hedera, and Litecoin trusts into ETFs. The extensions show the regulator’s cautious stance toward altcoin ETFs, despite its approval of spot Bitcoin and Ethereum ETFs after a court ruling forced policy changes.
SEC Extends Deadlines to November
According to a published order, the SEC had proposed November 12, 2025, as the new deadline for the Nasdaq proposal to list the Grayscale Hedera Trust, following which Grayscale will file updated registration statements for its Bitcoin Cash and Litecoin trusts, both on Form S-3.
Bank of New York Mellon is listed as the administrator for both funds, while Coinbase will act as custodian and prime broker. The filings show both trusts are structured for listing on NYSE Arca if approved.
Grayscale also submitted a Form S-1 for the Hedera Trust, its first registration for the product, with the proposed ticker HBAR. The listing is dependent on the Nasdaq pending rule change request.
Rising Backlog of ETF Applications
The SEC has consistently used its authority to extend decision periods under U.S. securities law, which normally allows 180 days plus a possible 60-day extension. These extensions have become common in 2025 as crypto ETF applications pile up.
Earlier in August, the SEC exercised its final procedural extension for pending Solana ETF proposals, pushing the deadline to October 16. The regulator also extended review periods for filings from Bitwise, 21Shares, Canary Funds, and Marinade Finance.
As of August 29, at least 92 crypto-related ETF products awaited decisions, from Bitcoin, Ethereum, Solana, XRP, and other digital assets. In most cases, the SEC has avoided early approvals or rejections, opting to stretch reviews toward statutory limits. This approach now places multiple deadlines in October, raising expectations for several rulings within weeks.
ETF Conversions to Reduce Market Frictions
Grayscale’s decision to update its Bitcoin Cash and Litecoin filings follows its earlier success in 2024, wherein it converted the Grayscale Bitcoin Trust into the first U.S. spot Bitcoin ETF, following the approval from the SEC. The current applications are designed to enable daily share creations and redemptions.
This mechanism helps maintain prices closer to net asset value, avoiding the steep premiums and discounts typical in over-the-counter markets. Considering its earlier approach with Bitcoin, Grayscale proposes to use it for Bitcoin Cash and Litecoin.
Following Grayscale, the regulatory agency also pushed Bitwise’s Dogecoin ETF to the same date. The application was first filed in March and entered the review period after publication in the Federal Register.
Apart from these, the SEC had postponed ETF applications of NYSE Arca’s Truth Social Bitcoin and Ethereum ETF to October 8, while the 21Shares and Bitwise Solana ETFs is pushed to October 16, and the 21Shares Core XRP Trust to October 19. It also extended the Canary PENGU ETF review to October 12 and the WisdomTree XRP Fund to October 24.
According to Lionel Iruk, managing partner at Empire Legal, assets linked to pending ETF products often trade at premium levels. He noted that ETF structures provide transparency, custody, and compliance frameworks that align with institutional requirements, broadening appeal beyond crypto native investors.
Related: Ondo Finance Launches Tokenized U.S. Stocks and ETFs on Ethereum
Divide Between Bitcoin and Altcoin ETFs
The SEC’s treatment of Bitcoin ETFs has differed from its handling of altcoin products. During the period of Gary Gensler, the regulatory agency had a robust resistance against digital assets and their ETFs. However, with President Donald Trump at the helm, several applications had been approved.
As of July 31, at least 31 altcoin spot ETF applications were submitted in the first half of 2025, showing mounting demand for regulated exposure. Yet, the SEC has remained reluctant to issue quick approvals, adding to delays and uncertainty.
On September 9, Lookonchain reported that 10 spot Bitcoin ETFs posted net inflows of 2,409 BTC, worth $267.37 million. In contrast, nine Ethereum ETFs recorded net outflows of 47,101 ETH, worth $201.87 million.
Grayscale’s filings for Bitcoin Cash, Hedera, and Litecoin ETFs, alongside the SEC’s extended reviews, show the growing difficulties of crypto regulation in 2025. With review periods scheduled for October, the agency faces mounting pressure to determine how far approvals will extend beyond Bitcoin.
