- SEC delays verdict on Grayscale’s spot Avalanche and Cardano ETFs to July 15, 2025.
- Decision extensions fall under Section 19(b)(2) of the Exchange Act.
- Public comments remain open as part of the evaluation process.
The U.S. Securities and Exchange Commission has extended its review timeline for Grayscale’s proposed Avalanche and Cardano ETFs, pushing the next key decision date to July 15, 2025. Nasdaq filed the Avalanche ETF in March, while the Cardano proposal came via NYSE Arca in February, aiming to convert Grayscale’s existing trust into a spot ETF.
Unlike Bitcoin and Ethereum ETFs, which have gained some regulatory ground, no altcoin ETF has received approval so far. The SEC’s measured approach signals its intent to thoroughly assess market risks and investor protections before allowing new crypto products.
Regulatory Scrutiny Continues as SEC Extends Grayscale’s Altcoin ETF Decisions
The SEC’s decision to delay Grayscale’s Avalanche and Cardano ETF applications underscores the regulatory complexity surrounding altcoin investment products. By invoking Section 19(b)(2) of the Exchange Act, the Commission gave itself more time to evaluate whether these proposals meet legal and market standards.
The Cardano ETF proposal is particularly notable as it aims to convert the existing Grayscale Cardano Trust into a spot ETF, a move that could set precedent for future trust-to-ETF conversions. Meanwhile, the Avalanche ETF would trade under Nasdaq’s Commodity-Based Trust Share framework, further testing the limits of current ETF structures.
These delays follow similar postponements for Solana-based ETFs filed by Bitwise, 21Shares, VanEck, and Canary. In each case, the SEC has signaled a desire to “institute proceedings” for deeper analysis—a standard tactic that may stretch reviews to the full 240-day maximum allowed.
Despite mounting institutional interest, the SEC’s cautious stance suggests that broader crypto ETF approval hinges not just on market demand but also on evolving political and legal frameworks. The Commission’s response to public feedback and market developments in coming months will be critical to shaping the path forward.
As July 15 approaches, the spotlight remains on the SEC’s evolving position on crypto ETFs—particularly those tied to altcoins—marking a crucial test of regulatory intent.
“The SEC is not anti-crypto, but it is pro-investor protection.” — Hester Peirce, SEC Commissioner
