SEC Pumps the Brakes: Grayscale's Avalanche and Cardano ETFs Get Delayed Until July 2025!

SEC Extends Review Period for Grayscale's Crypto ETFs

Hang on tight, crypto fans! The SEC just threw a wrench in Grayscale's plans for launching spot ETFs for Avalanche and Cardano. The review's been pushed back to July 15, 2025. Talk about a cliffhanger!

Why the Delay?

On May 28, the SEC dropped a bombshell, saying they need more time to chew over these proposed rule changes. They're using Section 19(b)(2) of the Securities Exchange Act of 1934 like a get-out-of-jail-free card, stretching that 45-day review window. It's like they're saying, "Hold up, we need more time to figure this out!"

Avalanche ETF: Nasdaq's Bold Move

Nasdaq didn't mess around, filing the Avalanche ETF proposal on March 27, 2025. They want to list and trade shares of the Grayscale Avalanche Trust under Nasdaq Rule 5711(d). It's like they're ready to go, but the SEC's like, "Not so fast, cowboy!"

The Federal Register and the Countdown

The proposed rule change hit the Federal Register on February 16, 2025, kicking off the statutory review timeline. The original decision deadline? May 31, 2025. But that's all out the window now.

Cardano ETF: NYSE Arca's Plan

Meanwhile, Grayscale's Cardano ETF proposal got submitted through NYSE Arca on February 10, 2025. They're looking to convert the existing Grayscale Cardano Trust into a spot ETF. An amended filing came in on February 20, and it got published for public comment on February 28, starting a 240-day review window that ends on October 22, 2025.

What's Next?

With the delay now set in stone, the next big date for both ETFs is July 15, 2025. That's when the SEC has to either give the green light, slam the brakes, or start more proceedings to keep digging into these proposals. And guess what? Public comments are still open, so the SEC's all ears for feedback on these applications.

SEC's Cautious Approach to Altcoins

No altcoin ETF has made it through the SEC's gauntlet yet, which just shows how careful they're being with crypto products beyond Bitcoin and Ethereum. Under new leadership, the Commission's been hitting the brakes on other crypto ETFs too, like those for Solana, XRP, and Ethereum staking products.

More Delays on the Horizon?

Just this month, the SEC postponed decisions on four Solana ETF filings from Bitwise, 21Shares, VanEck, and Canary, saying they'd "institute proceedings" to see if those proposals make the cut. It's like they're saying, "We're not ready to make a call yet!"

What the Experts Say

Analysts are saying these delays are just part of the SEC's usual dance with innovative financial products like crypto ETFs. Bloomberg's ETF guru, James Seyffart, spilled the beans that the regulator often takes the full 240 days to mull over these filings. So, don't hold your breath for final decisions on these ETFs until October 2025 at the earliest. Buckle up, folks, it's going to be a wild ride!