SEC Delays Decisions on PENGU and T. Rowe ETFs, Invites Public Comments on Grayscale Ecosystem

SEC Announcements

The U.S. Securities and Exchange Commission (SEC) has extended the decision deadline for two cryptocurrency-related exchange-traded funds (ETFs) while simultaneously opening a window for public comments on a proposal related to a multi-asset cryptocurrency fund by Grayscale. The announcement was made on Monday through a series of notices in the Federal Register.

Decision Delays

In separate notices, the SEC designated a longer period to analyze proposed rule changes that would allow the listing of the PENGU ETF (Canary Pudgy Penguins) on Cboe BZX and the Active Crypto ETF from T. Rowe Price on NYSE Arca. Both proposals fall under the SEC’s standard 19b-4 process, which allows for an extension of the initial decision period by up to 45 days while the agency evaluates market structure, investor protection, and potential manipulation.

PENGU and T. Rowe ETFs

The PENGU ETF aims to provide exposure to the Pudgy Penguins ecosystem, a collection of non-fungible tokens (NFTs), thus constituting a more unconventional cryptocurrency-related ETF proposal. This serves as a test of how far the agency is willing to go in accepting meme-like exposure and NFTs in an ETF format. Conversely, the T. Rowe Price Active Crypto ETF is an actively managed vehicle that would invest in a diversified basket of digital assets beyond Bitcoin (BTC) and Ether (ETH), bringing a traditional mutual fund branding closer to multi-asset cryptocurrency strategies.

Grayscale Project

In conjunction with the delays, NYSE American has submitted a proposal to amend rules to list standardized options on the Grayscale CoinDesk Crypto 5 ETF, a fund that seeks to track an index of five large digital assets: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). The proposal has entered the public comment phase, where market participants can express their views on the compatibility of options listing with the standards of the Securities Exchange Act for fair and orderly markets, protecting against fraud and manipulation.

Conclusion

If approved, the listing of options on a multi-asset cryptocurrency ETF would add a new dimension of leverage and protective tools for digital assets, expanding a derivatives ecosystem that is mainly focused on Bitcoin and Ether products.