SEC Delays PENGU and T. Rowe Crypto ETFs, Reviews Grayscale Bid

TLDR

• The SEC has extended its decision deadline for the PENGU and T. Rowe crypto ETF proposals.
• Canary’s PENGU ETF seeks exposure to the Pudgy Penguins NFT ecosystem.
• T. Rowe Price proposed an actively managed crypto ETF that includes assets beyond Bitcoin and Ethereum.
• The SEC opened a public comment window for listing options on the Grayscale CoinDesk Crypto 5 ETF.
• Grayscale’s ETF tracks Bitcoin, Ethereum, XRP, Solana and Cardano in a single fund.

The U.S. Securities and Exchange Commission (SEC) extended review periods for two crypto ETFs and opened comments on a third proposal, with decisions affecting Canary’s PENGU ETF, T. Rowe’s Active Crypto ETF, and Grayscale’s Crypto 5 ETF option request progressing through the regulatory process simultaneously.

SEC Extends Decision Timeline for PENGU and T. Rowe Crypto ETFs

The SEC extended the decision window for the proposed Canary Pudgy Penguins (PENGU) ETF and the T. Rowe Price Active Crypto ETF. Both proposals aim to list under the SEC’s 19b-4 rule change process on Cboe BZX and NYSE Arca.

The Commission stated it required more time to evaluate concerns around investor protection, market structure, and price manipulation risks. “The Commission finds it appropriate to designate a longer period,” the filings read.

Canary’s PENGU ETF seeks exposure to the Pudgy Penguins NFT ecosystem and represents one of the more unconventional crypto ETF filings. It tests regulatory willingness to consider meme-related or NFT-adjacent assets within an ETF framework.

T. Rowe’s proposed fund, on the other hand, is an actively managed product investing in a broader mix of crypto assets beyond Bitcoin and Ether. The filing marks a traditional asset manager’s expansion into diversified digital asset portfolios.

The delay does not confirm any regulatory position but shows the SEC is evaluating the scope of exposure. The new deadlines follow the standard 45-day extension allowed under SEC review processes.

Public Comment Opens for Grayscale CoinDesk Crypto 5 ETF Options

NYSE American submitted a separate proposal to list standardized options on the Grayscale CoinDesk Crypto 5 ETF. This multi-asset fund includes Bitcoin, Ethereum, XRP, Solana, and Cardano in its portfolio.

The proposal entered the public comment phase, allowing market participants to share views under Exchange Act standards. The SEC now evaluates whether the options listing ensures market fairness and guards against manipulation.

The introduction of options trading on crypto ETFs would increase leverage and hedging tools available to investors. Most current crypto derivatives focus solely on Bitcoin and Ether products.

If approved, Grayscale’s product would expand the derivatives market across multiple crypto assets. The comment period enables input from exchanges, investors, and other stakeholders.

The SEC also acknowledged NYSE American’s parallel filing regarding the options listing request. This notice aligns with the current regulatory practice of reviewing ETF-linked options under broader compliance checks.

SEC Maintains Cautious Approach on Non-Bitcoin Crypto Funds

The SEC continues to use the full review window when assessing ETFs that go beyond large-cap crypto assets. The Commission uses this time to examine investor protection frameworks and trading dynamics.

While not a rejection, these extensions allow the agency to gather more feedback and technical analysis before issuing decisions. Stakeholders now await further announcements as deadlines approach.

Grayscale, Canary, and T. Rowe are among several issuers pushing for ETF innovation in the digital asset sector. These new filings show increased interest in diversified crypto strategies beyond single-asset funds.

ETF proposals continue to reflect evolving strategies tied to NFTs, altcoins, and basket-based indexes. The SEC’s latest actions reinforce that products with broader exposure receive extended scrutiny under current policy.

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