SEC delays approval of PENGU and T. Rowe crypto ETFs, Grayscale options trading enters review stage

Entering 2026, the U.S. Securities and Exchange Commission (SEC) has once again signaled caution regarding cryptocurrency ETF regulation. According to the latest disclosed documents, the SEC has decided to extend the approval timeline for two cryptocurrency-related ETFs and has also initiated a public comment period for another crypto ETF options trading, drawing widespread market attention.

Overall, the delayed review products include the Pudgy Penguins (PENGU) ETF launched by Canary and the actively managed cryptocurrency ETF submitted by T. Rowe Price. Both applications are under the SEC’s 19b-4 review mechanism, which grants the regulator the authority to extend the approval period by up to 45 days beyond the initial deadline to further assess market structure, investor protection, and potential manipulation risks.

From a product structure perspective, the PENGU ETF is particularly notable. The fund plans to invest in Pudgy Penguins-related ecosystem assets, originating from a well-known NFT series, and is considered a relatively “non-mainstream” category among current crypto ETF applications. This has been interpreted by the market as the SEC testing whether NFT and internet culture assets are suitable for inclusion within a regulated ETF framework.

In contrast, T. Rowe Price’s cryptocurrency ETF leans more towards a traditional institutional style. This actively managed fund’s investment scope is not limited to Bitcoin and Ethereum but covers a broader digital asset portfolio. This approach indicates that traditional asset management firms are attempting to deepen their involvement in the crypto market through diversification strategies.

In summary, the delay does not equate to a rejection but reflects the SEC’s cautious attitude toward “non-blue-chip” crypto assets. Regulators clearly want a clearer understanding of risk boundaries before approving such products.

Meanwhile, another development has also attracted attention. The CoinDesk Crypto 5 ETF options trading proposal under Grayscale has officially entered the public comment phase. This ETF tracks multiple mainstream digital asset indices, and if options trading is approved, it will provide the market with more hedging and risk management tools, potentially expanding crypto derivatives structures from single assets to multi-asset portfolios.

Overall, the SEC’s current actions send a clear signal: the crypto ETF market in 2026 is still expanding, but with a focus on compliance and stability. This regulatory orientation will continue to influence the institutionalization process of crypto assets and the launch pathways of related products.