The U.S. Securities and Exchange Commission (SEC) has officially delayed its ruling on Grayscale’s proposed spot Hedera ETF, a move that adds to the pattern of regulatory hesitation surrounding cryptocurrency investment products. Instead of issuing a final verdict, the SEC has opened a public comment period, extending its review process and setting a new deadline of November 11, 2025.

This delay reflects the SEC’s cautious approach toward crypto-linked exchange-traded funds (ETFs), even as market demand for such products grows. Grayscale first submitted the ETF application in February 2025. The latest delay came just ahead of the SEC’s second deadline on June 15, marking another instance where the agency opted for more evaluation time.

Regulators Seek Clarity on Market Risks

In its official notice, the SEC explained that the decision to pause the approval process is meant to gather more insights into Hedera’s market structure. The agency is particularly interested in hearing from the public about Hedera’s suitability as the ETF’s underlying asset. The focus areas include:

• Potential for market manipulation

• Transparency in pricing

• Investor protections and risk management

While this delay may appear like a setback, the SEC emphasized that initiating a review does not suggest a negative outcome. Rather, it allows the regulator to assess all technical and legal factors thoroughly before making a final call.

New Deadline Set for November 11

With the review period now extended, the SEC is expected to give its final ruling by November 11. This deadline applies to both the Grayscale Hedera ETF and another pending proposal—the Canary spot Hedera ETF—which also experienced a delay earlier in the week.

The review is part of the SEC’s standard operating procedure for crypto ETFs. It aims to collect public feedback, evaluate concerns, and gauge the overall market impact. While the agency has yet to approve a spot Hedera ETF, it is under increasing pressure to move faster on applications from reputable firms like Grayscale.

Analysts Remain Optimistic About Approval Odds

Despite the delay, optimism in the crypto market remains strong. Bloomberg Intelligence analysts project an 80% likelihood that the Grayscale Hedera ETF will be approved in 2025. This optimism stems from recent trends where the SEC has softened its stance on cryptocurrency-related financial products, especially following the approval of Bitcoin and Ethereum ETFs.

The growing institutional appetite for altcoin ETFs has created a shift in market sentiment. Investors now anticipate that several altcoin-based ETFs—including those tied to Hedera, Solana, and Litecoin—will receive regulatory clearance in the coming months.

Wave of Altcoin ETF Approvals Expected

According to Bloomberg, the broader market could soon witness a wave of ETF approvals for alternative cryptocurrencies. Their experts suggest that Solana may be among the first to gain approval, followed by other prominent altcoins like Hedera and Litecoin. These expectations are supported by amendments and refinements in ETF proposals, indicating better alignment with SEC guidelines.

ETF Store President Nate Geraci has noted that XRP could actually get the green light before Solana, given Ripple’s ongoing legal clarity with the SEC. According to Geraci, the regulatory history of a crypto asset plays a major role in its ETF’s chances of being approved.

Grayscale Pushes Forward Despite Delays

Grayscale remains committed to expanding its ETF offerings. The company is still awaiting decisions on several other ETF applications, even as the current regulatory climate shows both caution and curiosity. The crypto investment firm believes that more inclusive financial products will benefit retail and institutional investors alike.

In the meantime, the broader crypto industry continues to advocate for transparent, regulated investment tools that give investors exposure to blockchain technology and digital assets. The demand for spot ETFs is growing rapidly as users seek safer and more accessible ways to invest in crypto.

Conclusion: What Comes Next for the Hedera ETF

While the SEC’s delay adds to the list of postponed crypto ETF decisions, it doesn’t close the door on eventual approval. The current review process gives stakeholders—including individual investors, crypto firms, and legal experts—a chance to influence the regulatory outcome.

As the November 11 deadline approaches, all eyes will be on the SEC’s next moves. Whether Grayscale’s Hedera ETF gets approved will not only affect the Hedera network but could also set the tone for how quickly the U.S. embraces crypto-based financial instruments in 2025.