SEC Delays Grayscale Polkadot ETF Decision to 2025

The SEC has postponed its decision on Grayscale’s Polkadot (DOT) spot ETF, setting a new deadline for later in 2025, reflecting ongoing regulatory scrutiny.

This delay underscores the regulatory caution surrounding altcoin ETFs, impacting market expectations and institutional involvement in digital assets like Polkadot.

Crypto Market Reactions and Polkadot’s Current Performance

Grayscale’s application for a Polkadot spot ETF remains in regulatory limbo following the SEC’s decision to extend the review period to late 2025. This aligns with previous postponements of altcoin ETF decisions, marking a pattern in the SEC’s handling of such applications.

Consequently, the crypto market has not experienced significant immediate volatility. Despite concerns over regulatory delays, institutional interest in Polkadot and related assets remains subdued as stakeholders anticipate regulatory guidance.

James Seyffart, Bloomberg analyst, suggests:

The earliest possible approval for the DOT ETF is likely Q4 2025.

The SEC’s request for more public commentary emphasizes ongoing regulatory considerations.

Market Data and Analyst Insights

Did you know? SEC’s postponed decisions have previously led to significant market volatility. The delayed approval of Bitcoin ETFs in past years resulted in heightened market anticipation, contrasting with current muted reactions.

According to CoinMarketCap, Polkadot (DOT) currently holds a market cap of $6.22 billion, with a price of $3.85. The 24-hour trading volume showed a 38.69% increase, reaching $261.77 million. Recent price shifts include a 1.81% uptick over 24 hours, contrasting with a 4.45% decrease over 90 days.

Analysts from Coincu Research suggest that regulatory uncertainty continues to suppress institutional engagement in crypto ETFs. Encouraging transparency and accountability might eventually expedite the approval process, potentially enhancing altcoin market stability.