SEC Delays Decision on Grayscale ADA ETF and AVAX ETF

According to the latest development, the U.S. Securities and Exchange Commission has reportedly delayed its decision on two proposed crypto ETF from Grayscale, Avalanche ETF and Cardano ETF.

The delay follows a similar pattern as regulators take more time to evaluate the ETF before giving any decision. This was Grayscales’s effort to covert its existing Avalanche Trust into a Spot ETF, however, the review is still ongoing, and no final judgment has been made. At the same time, the agency confirmed that it needs additional time to evaluate Grayscale’s Cardano ETF application.

NYSE Arca, a subsidiary of the NYSE Group filled out the application on behalf of Grayscale on Feb.10 to list shares of the Grayscale Cardano Trust (ADA) under the exchange’s Rule 8.201-E, which covers Commodity-Based Trust Shares.

On February 20, NYSE Arca submitted Amendment No. 2 to the application, replacing the earlier version entirely. The amended proposal was later published for public comment in the Federal Register on February 28, 2025. 

According to SEC rules, the agency must respond to such proposals within 45 days of publication or extend the review to a total of 90 days if necessary. 

The 45-day deadline fell on April 14, but the SEC chose to extend the review to May 29, 2025, to allow more time to consider the application and related issues. But now, it seems the date has been extended further.

The SEC always reviews each ETF proposal to ensure it meets the standards laid out in Section 6(b)(5) of the Exchange Act. This includes checking whether the application protects investors and prevents fraud and manipulation.

Meanwhile, both tokens haven’t reacted much to the news. At the time fo writing, Cardano (ADA) has only dipped by just 4% in the last 24 hours and currently trades for $0.2195, while AVAX is up 2.30% and trades for $23 over the same period.

Prediction market Polymarket still remains hopeful with users wagering over $367,000 on whether the Cardano ETF will be approved this year. 71% of the bet lean toward “yes” by December 31, 2025. This time last week, the SEC also delayed its decision on XRP AND DOGE ETF till June 17