By BlockAI
Lead: The SEC delay on Grayscale Hedera Trust listing extends the regulator’s review window as Nasdaq seeks to list the Hedera Trust on a U.S. exchange. The U.S. Securities and Exchange Commission has pushed the final decision deadline to November 12, after Grayscale filed Form S-1 for the Hedera Trust while updating Form S-3 filings for its Bitcoin Cash Trust and Litecoin Trust. Key players include Grayscale, Nasdaq, Bank of New York Mellon as administrator, and Coinbase as custodian and prime broker.
SEC decision timeline
The SEC delay on Grayscale Hedera Trust listing follows the agency’s statutory review process, which allows an initial 180-day period extendable by 60 days. The commission cited time to consider comments and ensure investor protections as it evaluates another wave of crypto ETF applications. This pause fits a broader pattern of measured regulatory review for exchange listings tied to digital assets.
Grayscale and Nasdaq
Grayscale submitted a Form S-1 registration for Hedera Trust while Nasdaq filed to list the product. Meanwhile, Grayscale updated Form S-3 registrations for its Bitcoin Cash Trust and Litecoin Trust, seeking NYSE Arca listings. The combined activity shows Grayscale pursuing multiple paths to bring crypto products to regulated U.S. markets.
Regulatory review impact
The SEC delay on Grayscale Hedera Trust listing underscores regulatory caution amid a crowded pipeline of ETF applications. With more than 90 crypto ETF applications under review, the commission is weighing custody arrangements, market surveillance, and compliance rules. That scrutiny affects prospective crypto ETF approvals and could reshape liquidity channels for institutional investors.
Form S-1 and S-3
Grayscale’s Form S-1 for Hedera Trust outlines the product structure and planned Nasdaq listing. Its updated Form S-3 submissions cover Bitcoin Cash Trust and Litecoin Trust details for NYSE Arca. Bank of New York Mellon is named as administrator in the filings, with Coinbase handling custody and prime brokerage services — both elements the SEC typically analyzes closely.
NYSE Arca plans
Grayscale’s choice to target NYSE Arca for Bitcoin Cash Trust and Litecoin Trust listings signals a strategy to diversify exchange venues. The SEC delay on Grayscale Hedera Trust listing does not halt these parallel efforts, but it does delay market access for Hedera-based exposure until the regulator completes its review.
Crypto ETF pipeline
Investors view the SEC delay on Grayscale Hedera Trust listing alongside a larger crypto ETF pipeline that includes Bitcoin, Ethereum, Solana, and XRP proposals. Approval of these products would expand regulated options. For now, market participants watch the SEC’s process, filings, and exchange responses for clues on timing and eventual approvals.
Frequently asked questions about SEC delay on Grayscale Hedera Trust listing (FAQ)
Who requested the Nasdaq listing?
Nasdaq filed the proposal to list Grayscale’s Hedera Trust after Grayscale submitted Form S-1 for the product.
Why did the SEC delay its decision?
The SEC used its statutory review extension to consider comments and assess custody, governance, and investor-protection concerns during its regulatory review of crypto listings.
Do other Grayscale trusts have active filings?
Yes. Grayscale updated Form S-3 registrations for its Bitcoin Cash Trust and Litecoin Trust, aiming for NYSE Arca listings.
Who are the service providers named in the filings?
Bank of New York Mellon is listed as the administrator, and Coinbase is cited as custodian and prime broker.
What’s next for investors?
Monitor the SEC’s November 12 deadline, exchange notices from Nasdaq and NYSE Arca, and any updated Form S-1 or Form S-3 disclosures that clarify product structure and risk.
