SEC Drags Feet on Grayscale’s ADA, AVAX ETF Bids – Crypto’s Regulatory Limbo Deepens

Grayscale’s push to launch ETFs for Cardano (ADA) and Avalanche (AVAX) hits another wall—regulators won’t bite. The SEC’s hesitation? Unclear. But crypto’s usual suspects—volatility, ‘unproven’ utility, and that pesky ‘security’ debate—are likely culprits.

Wall Street’s love-hate affair with crypto continues. TradFi wants in on the action—just not enough to actually, you know, approve anything.

SEC delays Grayscale’s two ETF proposals

The SEC has recently postponed its ruling on Grayscale’s spot ETF requests for Cardano [ADA] and Avalanche [AVAX] once more.

Despite the extension, the overall evaluation period remains fixed at 240 days, with a final verdict expected by the 22nd of October 2025.

The SEC noted, 

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

What’s behind the delay?

Grayscale filed the proposal to list and trade shares of the Avalanche Trust on the 27th of March, and the public could provide input starting 16th February.

The SEC initially planned to decide by the 31st of May, ending the 45-day review period.

However, to conduct a more thorough analysis and carefully consider public comments, the Commission extended the deadline to the 15th of July.

This extra time allows regulators to evaluate all aspects of the application, including potential risks, before deciding whether to approve, reject, or initiate further proceedings.

Market sentiment stays strong

However, despite the regulatory delays, market sentiment around Cardano and Avalanche remains resilient.

At the time of writing, ADA was trading at $0.7524, reflecting a modest 0.60% gain over the past 24 hours, while AVAX has climbed by 2.41% to reach $23.77.

Meanwhile, on Polymarket, the likelihood of Cardano’s spot ETF approval is estimated at 67%, though no similar prediction data is currently available for Avalanche.

This development comes shortly after the SEC also postponed its decision on Grayscale’s proposed XRP and Doge spot ETFs on the 20th of May, highlighting a broader trend of cautious scrutiny by the Commission across multiple crypto-based investment products.