The U.S. Securities and Exchange Commission (SEC) has officially set a deadline for a critical decision regarding Grayscale’s proposed spot Hedera (HBAR) ETF, with a final ruling expected by November 12, 2025. This marks a significant moment for altcoin funds and could have far-reaching implications for the cryptocurrency market.
The SEC’s decision pertains to Grayscale’s application submitted in September 2025, which included a new form S-1 for the Grayscale Hedera Trust as well as requests for approval of Nasdaq’s exchange rules associated with the listing. If approved, the trust would trade under the ticker symbol HBAR, providing U.S. investors with a regulated means of gaining direct exposure to the Hedera token.
This impending ruling is particularly noteworthy as it represents the last legal extension permitted under Section 19(b)(2) of the Securities Exchange Act. Following an earlier extension granted by the SEC, the regulatory body is now pressed to make its decision by the set deadline. The outcome of this application is being closely monitored by investors and industry stakeholders alike.
Approval of the Grayscale ETF would herald the first regulated spot Hedera product in the U.S., making it a landmark achievement for the altcoin market. Conversely, a rejection would signal a trend of regulatory caution, potentially stifling future applications for altcoin funds. The stakes are elevated, as this decision could serve as a bellwether for other altcoin ETF applications.
Adding to the competitive landscape, another issuer, Canary Capital, has already launched a spot Hedera ETF that is currently listed on Nasdaq. The decision for the Canary Capital ETF is set for November 8, 2025, just four days ahead of the Grayscale deadline, and this ruling could influence how the SEC approaches the Grayscale application.
The delay in the ETF approval process aligns with a broader trend observed in the SEC’s approach toward cryptocurrency ETFs. Despite the successful approvals of Ethereum and Bitcoin ETFs in 2024, the agency has displayed a conservative stance regarding new cryptocurrency investment products. This creates a delicate balance for the SEC, which is tasked with protecting investors while also fostering market innovation.
Currently, at least six U.S. ETF proposals related to HBAR have been filed, including those from REX-Osprey and KraneShares, reflecting a growing institutional interest in regulated crypto products. Investors and market participants are looking for a decisive signal from the SEC’s upcoming ruling.
In related developments, Hedera has recently bolstered its strategic positioning by transferring 250 million HBAR to a staking rewards account, viewed as a pre-ETF strategy designed to enhance yields while constraining token supply. Metrics indicate robust network activity, particularly in tokenization, which has potential corporate use cases poised for growth.
Overall, the forthcoming SEC judgment is anticipated to act as a litmus test for the viability of broader ETF adoption for altcoins. As the industry watches closely, the Grayscale decision could define future opportunities and regulatory frameworks surrounding digital asset funds, making the ticking clock an emblematic symbol of the crucial countdown ahead.
