The U.S. Securities and Exchange Commission (SEC) has announced an extension on its review period for two notable cryptocurrency exchange-traded funds (ETFs): the Canary Pudgy Penguins (PENGU) ETF and the T. Rowe Price Active Crypto ETF. This decision was disclosed in separate notices today, highlighting the regulator”s ongoing scrutiny of these proposals.
Each proposal is currently undergoing assessment under the SEC”s standard 19b-4 process, which permits the agency to extend its decision timeline by up to 45 days. This additional time allows the SEC to thoroughly analyze the operational mechanics of these ETFs, investor protections, and potential risks related to market manipulation.
Canary PENGU and T. Rowe Price ETFs Under SEC Review
The Canary PENGU ETF aims to attract investors to the Pudgy Penguins ecosystem, associated with a widely recognized NFT collection. This unique proposal presents an intriguing challenge for the SEC, as it tests the agency”s openness to approving ETFs linked to meme culture and NFT-related assets.
While the PENGU token was observed trading between $0.0118 and $0.0120, significant movements were absent. However, trading volume experienced a notable surge, increasing nearly 90% to reach $192 million within 24 hours. On the other hand, the T. Rowe Price Active Crypto ETF represents a strategic shift for the established asset manager, known primarily for its mutual funds. This ETF will diversify its investments across various cryptocurrencies beyond just Bitcoin and Ethereum, indicating a broader commitment to the digital asset space.
It is important to note that the SEC”s procedural delays are not indicative of a final decision and do not reflect the agency”s stance on these proposals.
Grayscale Crypto ETF Options Move to Public Review
In conjunction with these delays, NYSE American has submitted an application to list standardized options for the Grayscale CoinDesk Crypto 5 ETF, which encompasses major cryptocurrencies such as Bitcoin, Ethereum, Cardano, XRP, and Solana. This application has now entered a public comment phase, wherein the SEC seeks input regarding the compliance of these options with the Exchange Act”s standards for market disclosure.
The forthcoming feedback will play a crucial role in shaping the SEC”s ultimate decision on these options and their suitability for public trading.
