SEC halts evaluation of ETF proposals for Dogecoin, Hedera Hashgraph, and Avalanche, leaving the future uncertain for altcoin ETFs this summer.
Crypto ETF Delays: SEC's Cautious Approach Puts Approval in Doubt
The Securities and Exchange Commission (SEC) has hit the brakes on crypto exchange-traded fund (ETF) proposals, casting doubt over their upcoming approval.
This week's filings reveal that the SEC is postponing its decision on three ETF proposals, including those for Dogecoin, Hedera, and Avalanche. Initiated respectively by Bitwise, Grayscale, and VanEck earlier this year, these ETFs propose to launch spot ETFs directly backed by Dogecoin, Hedera, or Avalanche. If approved, these ETFs would offer investors access to regulated versions of the assets.
However, the SEC has expressed a need for additional time to review these proposals. Concerns regarding investor protection and market integrity have arisen, causing the regulatory commission to open proceedings for further scrutiny of whether the ETFs comply with the law.
The SEC's decision has diverged from industry predictions. According to Bloomberg analyst James Seyffart, the likelihood of approval hovered around 75% to 80% this week, fueled by positive interactions between the commission and issuers.
These regulatory decisions have sent shockwaves through the markets, dampening investor morale and leading to a market sell-off across the three tokens. AVAX experienced the sharpest drop, losing roughly 12.5% from approximately $21.25 to $18.60 in just a few hours. HBAR followed with an 11.5% slide, plummeting from $0.1708 to $0.1512, while DOGE suffered a significant 10.2% drop, sliding from $0.1906 to $0.1711. Despite minor recoveries since the initial dip, all three tokens continue to face uncertainty in the wake of ETF approval speculation.
Whispers of Potential ETF Approval Favor SUI TVL's Return to $2B
In separate news, decentralized finance (DeFi) platform SUI TVL has seen double-digit gains, approaching a potential $2B return. This surge follows persistent rumors of impending ETF approvals and increased attention surrounding the DeFi space.
- The SEC's postponement of ETF proposals for Dogecoin, Hedera, and Avalanche, as revealed in this week's filings, may have affected the token prices in the crypto market.
- In the aftermath of the SEC's decision, AVAX, HBAR, and DOGE all experienced significant drops, indicating a market sell-off.
- The SEC's recent regulatory decisions have sparked concerns about investor protection and market integrity, which could potentially impact other crypto assets like Solana, Litecoin, XRP, and those backed by Initial Coin Offerings (ICOs).
- In a contrast to industry predictions, the SEC's cautious approach towards ETFs has led to a decrease in investor morale, raising questions about the future of crypto finance and investing.
- As rumors of impending ETF approvals circulate, some DeFi projects, such as SUI, have seen double-digit gains, demonstrating the importance of technology in shaping the crypto finance and investing landscape.
