Summary
- The US Securities and Exchange Commission (SEC) said it extended the decision deadline for the Pudgy Penguins PENGU ETF and T. Rowe Price’s active crypto ETF by up to 45 days.
- The two ETFs are targeting listings on Cboe BZX and NYSE Arca, respectively, and the SEC said it is conducting additional review of market structure, investor protection, and potential price manipulation.
- The outlet said the delay is being interpreted as a signal that the SEC has begun a more cautious review of structures that go beyond existing bitcoin- and ether-focused products.
The US Securities and Exchange Commission (SEC) has extended the review deadline for two cryptocurrency-related exchange-traded funds (ETFs).
According to Cointelegraph, a cryptocurrency-focused media outlet, on the 12th the SEC said in a Federal Register notice that it was extending the decision deadline for the Pudgy Penguins PENGU ETF filed by Canary Capital and T. Rowe Price’s active crypto ETF. The two products are targeting listings on Cboe BZX and NYSE Arca, respectively.
The commission is reported to have secured up to an additional 45 days to further examine issues including market structure, investor protection, and the potential for price manipulation. The proposals are being reviewed under the SEC’s 19b-4 process.
The PENGU ETF is designed to provide exposure linked to the Pudgy Penguins ecosystem, an non-fungible token (NFT) project. By contrast, T. Rowe Price’s active crypto ETF is an actively managed product that diversifies across a range of digital assets beyond bitcoin and ether, and is seen as emblematic of traditional asset managers expanding multi-asset crypto strategies.
The outlet reported that “this review delay does not represent a final decision to approve or deny, and is interpreted as a signal that the SEC is taking a more cautious approach to structures that go beyond existing bitcoin- and ether-focused products.”
