The U.S. financial regulator has decided to extend the review timeline for two exchange-traded fund proposals, causing a new pause in the sector’s expansion. In three filings released this Monday, the SEC delays ETF decisions linked to Canary Capital and T. Rowe Price, citing the need for a longer period to evaluate investor protection and potential market manipulation risks. This move extends the standard 45-day window under the 19b-4 process, allowing for a deeper analysis of products that deviate from traditional digital assets.
Specifically, the Canary Pudgy Penguins (PENGU) ETF seeks to offer exposure to the popular non-fungible token collection ecosystem, representing an unusual test for the regulatory body. On the other hand, the T. Rowe Price Active Crypto ETF proposes an actively managed vehicle that would diversify its asset basket beyond Bitcoin and Ether.
The agency is rigorously examining these proposals due to their unconventional nature, seeking to determine if the current regulatory framework is sufficient to host multi-asset strategies under long-standing financial brands.
Likewise, administrative delays do not necessarily imply a final rejection, but rather reflect the commission’s desire to analyze more complex market structures. Thus, the regulator has opened a public consultation period for market participants to submit technical opinions on these applications.
The scrutiny of NFT-linked assets and active management strategies marks a new stage in the relationship between Wall Street and the digital asset industry, where diversification appears to be the next major institutional goal.
Grayscale seeks green light for derivatives on its multi-asset fund
On the other hand, the NYSE American exchange has filed a proposed rule change to list standardized options on the Grayscale CoinDesk Crypto 5 ETF. This fund tracks an index comprised of five of the largest market cap digital assets: Bitcoin, Ethereum, XRP, Solana, and Cardano. By entering the public comment phase, the financial community will be able to debate whether these hedging tools are consistent with fair and orderly market standards. The approval of these crypto options would add an additional layer of leverage and risk management for professional investors this year.
Furthermore, the development of a derivatives ecosystem for multi-asset funds would represent a significant milestone in the sector’s maturation, which has so far focused mostly on Bitcoin. However, the Securities and Exchange Commission’s caution persists, as it must ensure that safeguards against fraud exist before allowing these instruments. The integration of advanced financial derivatives into crypto-indexed vehicles could transform how large pension funds and insurers manage their exposure to the volatility of the leading cryptocurrency and its peers.
Could the multi-asset options market democratize risk hedging?
Therefore, the outcome of these public consultations will be fundamental in defining regulatory appetite toward the end of the first quarter of 2026. If the industry manages to demonstrate that surveillance mechanisms are robust, we could see a massive rollout of new financial products. Meanwhile, the delays in the Canary and T. Rowe Price proposals keep the market in a state of watchful waiting, where clarity on approval criteria remains the greatest demand from issuers and fund managers.
Finally, the sector watches closely to see if this comment period for Grayscale will facilitate a positive resolution in the coming months. The fact that the SEC delays ETF decisions on a recurring basis suggests that the institutional learning process regarding blockchain technology and its derivatives is still ongoing. It is expected that as January progresses, new guidelines will emerge allowing investors access to a wider range of financial tools, thereby consolidating the presence of digital assets in traditional global investment portfolios.
