Grayscale ETF bids in limbo – Why the SEC is hesitant on ADA, AVAX

• SEC delays choices on Grayscale’s Cardano and Avalanche ETF purposes till the fifteenth of July.
• ADA and AVAX’s costs rise regardless of regulatory uncertainty and postponed ETF approvals.

Since Paul Atkins took over as SEC Chair, the U.S. Securities and Alternate Fee (SEC) has adopted a noticeably extra open stance towards the cryptocurrency sector. 

This marked a departure from the extra stringent strategy of former Chair Gary Gensler.

Whereas this shift has sparked optimism throughout the digital asset panorama, it hasn’t eradicated all regulatory hurdles.

SEC delays Grayscale’s two ETF proposals

The SEC has not too long ago postponed its ruling on Grayscale’s spot ETF requests for Cardano [ADA] and Avalanche [AVAX] as soon as extra.

Regardless of the extension, the general analysis interval stays fastened at 240 days, with a closing verdict anticipated by the twenty second of October 2025.

The SEC famous, 

“The Fee finds it applicable to designate an extended interval inside which to take motion on the proposed rule change in order that it has ample time to contemplate the proposed rule change and the problems raised therein.”

What’s behind the delay?

Grayscale filed the proposal to checklist and commerce shares of the Avalanche Belief on the twenty seventh of March, and the general public might present enter beginning sixteenth February.

The SEC initially deliberate to resolve by the thirty first of Could, ending the 45-day evaluate interval.

Nevertheless, to conduct a extra thorough evaluation and thoroughly take into account public feedback, the Fee prolonged the deadline to the fifteenth of July.

This additional time permits regulators to guage all facets of the appliance, together with potential dangers, earlier than deciding whether or not to approve, reject, or provoke additional proceedings.

Market sentiment stays robust

Nevertheless, regardless of the regulatory delays, market sentiment round Cardano and Avalanche stays resilient.

On the time of writing, ADA was trading at $0.7524, reflecting a modest 0.60% acquire over the previous 24 hours, whereas AVAX has climbed by 2.41% to succeed in $23.77.

In the meantime, on Polymarket, the probability of Cardano’s spot ETF approval is estimated at 67%, although no comparable prediction knowledge is at present out there for Avalanche.

This improvement comes shortly after the SEC additionally postponed its resolution on Grayscale’s proposed XRP and DOGE spot ETFs on the twentieth of Could, highlighting a broader pattern of cautious scrutiny by the Fee throughout a number of crypto-based funding merchandise.