SEC Throws Sand in the Gears of Grayscale’s Cardano ETF Ambitions

Another day, another regulatory speed bump—Grayscale’s push for a Cardano ETF just got put on ice by the SEC. No surprises here: the agency’s playbook remains ‘delay, deflect, repeat.’

Wall Street’s favorite game: betting on crypto—until the regulators crash the party. Meanwhile, ADA holders are left twiddling their thumbs while the suits in D.C. drag their feet. Classic.

• The US SEC has delayed its decision on Grayscale’s Cardano ETF and Avalanche ETF applications.
• The final deadline for the Cardano ETF ruling remains October 22, 2025, within the 240-day review period.
• The SEC stated that more time is needed to assess the Cardano ETF proposal and gather public comments.

The US SEC has extended the review timeline for Grayscale’s Cardano ETFs and Avalanche ETF applications. The deadline for a final decision remains fixed at October 22, 2025, maintaining the 240-day review period. The decision to delay has impacted market performance, with both Cardano and Avalanche recording notable price drops.

SEC Extends Timeline for Cardano ETFs

The Commission acknowledged Grayscale‘s Cardano ETF application on February 24, 2025, beginning the statutory review period. The SEC is still responding to Grayscale’s effort to convert its Cardano Trust into a spot ETF. When the first decision date arrived, the SEC chose to push back its ruling to July 13, 2025.

Newsweek reports that the SEC needs additional time to test whether the app meets regulatory standards and rules on investor protection. The proposal is also on the timeline because the Commission opened it up for public comment. While the review is still within the 240-day legal limit, it has been delayed.

Earlier, enthusiasm surrounding cardano ETFs reached a high point as prediction platforms placed the approval odds at over 70 percent. That sentiment was reflected in market activity until the announcement of the delay ended momentum. Though it dropped nearly 4% to $0.73, Cardano’s daily transaction volume slipped 14%.

Avalanche ETF Application Also Faces Postponement

The SEC also delayed the grayscale application to amend its Avalanche Trust into a spot ETF. The Commission confirmed its decision to extend the review, mirroring its approach with Cardano ETFs. Also of immediate pertinence, the new timeline for the Avalanche ETF review ends on July 13, 2025.

The SEC said more analysis is needed to assess the ETF’s viability and ensure adherence to market integrity requirements. As Grayscale calls for more comments from market participants, it will have to wait for the Commission’s next steps. The Avalanche ETF application is going to be continuously evaluated based on public feedback.

After the delay on Saturday, Avalanche saw a 2.52 percent price decline in the last 24 hours. Additionally, the volume for AVAX dropped by almost 20 percent in terms of day trading volume. The crypto ETFs space, uncertainty, regulatory decisions, and market sentiment weakened.

Cardano ETFs Face Longer Wait Period

Recently, many in the spot crypto ETF space have observed that the SEC has seemingly adopted a pattern of postponing decisions on multiple spot crypto ETF applications. Earlier, two ETF approvals for Bitcoin and Ethereum ETFs came in before the 240-day deadline. This precedent leaves room for Optimism despite the extended timelines for Cardano ETFs and Avalanche.

Federal securities law and a structured framework govern the decisions made by the Commission. ‘We need reasonable time to examine the market consequences,’ a Commission spokesperson stated in the official release. ‘The SEC is still committed to due process for every filing, even while the timelines are stretched,’ it adds.

Other applications, from the CoinShares spot XRP ETF to everyone in between, were getting delay notices, so it seems consistent across the sector. Filings increases are continuing to stretch the SEC to and beyond the limits of the SEC’s capacity and procedural efficiency. 

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