U.S. SEC Delays on Canary PENGU and T. Rowe Price Crypto ETFs, Opens Grayscale Options Comments

• U.S. SEC extends review timelines for the Canary PENGU and T. Rowe Price Active Crypto ETFs. 
• Grayscale’s Coindesk Crypto 5 ETF options proposal has entered a public comment phase.

The U.S. Securities and Exchange Commission has pushed back decisions on two high-profile crypto exchange-traded funds (ETFs), by extending the review period for proposed rule changes of the Canary Pudgy Penguins (PENGU) and T. Rowe Price Active Crypto ETFs in two separate notices revealed today,  with that, U.S. SEC, then asked for a public comments on options linked to a Grayscale multi-asset crypto fund.

As both of these proposals are being reviewed by the U.S SEC under the usual 19b-4 process, which allows the regulator to delay its decision by up to 45 days. This extra time is used to closely examine how the ETFs would work, how investors would be protected, and whether there are any risks of price manipulation in the market.

Canary PENGU and T. Rowe Price ETFs Under Sec Review

Canary’s PENGU ETF seeks to bring investors to the Pudgy Penguins ecosystem, a well-known NFT collection. This makes it one of the more strange crypto-related ETF proposals currently being considered by the SEC. The filing also serves as a major test of the regulator’s willingness to approve ETFs concerning meme-related and NFT-associated assets.

While PENGU price was trading $0.0118 – $0.0120, there were no major movements, but the 24-hour trading volume surged nearly 90% and stands at $192 million.

Whereas the T. Rowe Price is a traditional asset manager, known for its mutual funds, it is now engaged in an Active Crypto ETF that invests in several kinds of cryptocurrencies other than Bitcoin and Ethereum, which signals a deeper shift by the traditional mutual fund company to broader and diversified crypto approaches. Therefore, these are the U.S. SEC’s procedural delays, as this is not a final verdict or any indication related to that.

Grayscale Crypto ETF Options Move To Public Review

With these delays, NYSE American applied to list standardized options on the Grayscale CoinDesk Crypto 5 ETF, which includes Bitcoin, Ethereum, Cardano, XRP, and Solana. This application was also filed under the SEC’s rule-change process.

Currently,  this application has entered the public comment phase, meaning the SEC is asking for feedback on whether listing options on this fund comply with Exchange Act standards for fair disclosure to the market before making any decision.