• CROX ROAD
  • Posts
  • SEC Drags Feet on Hedera Trust as Bitcoin Filings Take Priority

SEC Drags Feet on Hedera Trust as Bitcoin Filings Take Priority

The SEC has delayed its decision on Grayscale’s Hedera Trust until November 2025, while the firm updates filings for Bitcoin Cash and Litecoin. Here’s what it means for altcoin ETFs, Bitcoin’s dominance, and crypto investors.

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on Grayscale’s Hedera Trust, pushing back a potential greenlight until November 12, 2025. While the Hedera ETF remains in limbo, Grayscale is shifting its focus to updating filings for Bitcoin Cash (BCH) and Litecoin (LTC) trusts, signaling where the immediate priorities lie. The move underscores the SEC’s cautious stance toward altcoin-based ETFs, even as Bitcoin-related products advance more quickly.

Table of Contents

SEC’s Reluctance on Altcoin ETFs

The delay highlights an ongoing pattern: the SEC has shown far more comfort with Bitcoin and Ethereum investment products compared to other cryptocurrencies. Spot Bitcoin ETFs finally gained approval earlier this year, opening the door for institutional investors. But when it comes to altcoins like Hedera, Solana, or XRP, the Commission continues to move at a snail’s pace.

By extending the decision window for Hedera Trust, the SEC is buying more time to assess whether such altcoin products meet standards for market surveillance, investor protection, and price manipulation risks. This regulatory caution reflects a deep concern about how altcoin markets function compared to Bitcoin’s more established trading infrastructure.

Grayscale’s Strategy: Bitcoin Cash and Litecoin Take Center Stage

While Hedera waits, Grayscale is pressing ahead with updated filings for Bitcoin Cash and Litecoin trusts. The firm submitted fresh Form S-3 registrations, signaling its intent to eventually uplist these products on regulated exchanges.

By prioritizing Bitcoin-linked assets such as BCH and LTC, Grayscale is likely betting on a smoother regulatory path. Both coins are forks or extensions of Bitcoin’s protocol, and regulators may view them as closer to Bitcoin in terms of market behavior and liquidity. This strategy allows Grayscale to keep expanding its ETF lineup without putting all its chips on Hedera, which faces higher scrutiny.

Why Bitcoin Filings Get Priority

There’s a clear reason why Bitcoin and Bitcoin-linked assets dominate the SEC’s attention: institutional demand and market maturity. Bitcoin enjoys deep liquidity, transparent pricing, and established trading venues that reduce concerns about manipulation.

In contrast, altcoins often trade on offshore exchanges with less oversight. From the SEC’s perspective, this makes approving altcoin ETFs riskier. By emphasizing Bitcoin Cash and Litecoin filings, Grayscale can align with the regulator’s comfort zone while still broadening its product range.

Investor Implications

For investors, the SEC’s delay is a reminder of the uneven playing field between Bitcoin and the rest of the crypto market. Those betting on Hedera’s ETF approval will need to remain patient, as regulatory clarity may take months—or even years.

Meanwhile, Bitcoin Cash and Litecoin may benefit from being perceived as safer regulatory bets. If approved, these trusts could provide new avenues for institutional exposure, potentially boosting liquidity and price stability for BCH and LTC.

The Bigger Picture: Altcoin ETFs in Limbo

The Hedera delay is not an isolated case. Other altcoin ETF proposals, including those tied to Solana and Dogecoin, have also been pushed back. The SEC’s cautious approach suggests it is still reluctant to extend ETF approval beyond Bitcoin and Ethereum, despite growing demand from asset managers and retail investors alike.

This leaves the crypto market in a two-speed system: Bitcoin and Ethereum products gaining traction with institutional money, while altcoins remain locked out of mainstream financial products.

Conclusion

The SEC’s decision to delay Grayscale’s Hedera Trust filing underscores the regulator’s hesitation toward altcoin ETFs while reaffirming its comfort with Bitcoin-related products. Grayscale’s move to update Bitcoin Cash and Litecoin filings shows where the near-term opportunities may lie. For now, Bitcoin remains the regulator’s top priority—and altcoins like Hedera will have to wait their turn.

FAQs

Why did the SEC delay Grayscale’s Hedera Trust decision?

The SEC delayed the decision to allow more time for review, citing concerns over market manipulation, investor protection, and the overall regulatory framework for altcoin-based ETFs.

When is the new deadline for the SEC’s Hedera Trust ruling?

The SEC has pushed the deadline to November 12, 2025, though further extensions are still possible.

Why is Grayscale prioritizing Bitcoin Cash and Litecoin filings?

Bitcoin Cash and Litecoin are seen as closer to Bitcoin in design and market behavior, giving them a smoother regulatory pathway compared to less established altcoins like Hedera.

How does this impact Hedera investors?

The delay means Hedera (HBAR) will not gain ETF-driven institutional inflows in the short term, potentially slowing price momentum compared to Bitcoin-related assets.

What does this mean for the broader crypto ETF market?

The SEC’s hesitation suggests a two-tier system where Bitcoin and Ethereum ETFs move forward, while altcoin products face longer timelines and stricter scrutiny.

That's all for today, see ya tomorrow! If you want more, be sure to follow our X (@croxroadnewsco), Instagram (@croxroadnews.co), Youtube (@libertarianbtc), Tiktok (@croxroadnews) and nostr - [email protected]

VISIT OUR STORE

The Best Merch For Bitcoin Maxis

Visit Crox Road Store 👉🏻 https://croxroad.store/

FOLLOW US ON NOSTR

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

You May Also Like

If You Like Our Content And Want To Help Us To Make It Better, You Can Buy Us One (Or More!) Coffee CLICKING HERE

Reply

or to participate.