News 
May 28, 2025 
3 min. 
The U.S. Securities and Exchange Commission has delayed its decision on Grayscale’s proposed Avalanche and Cardano ETF. The postponement marks another instance in the SEC’s ongoing trend of deferrals, keeping investors in suspense as they await clarity on the future of these crypto-backed exchange-traded funds.
SEC Postpones Decision on Grayscale’s Avalanche and Cardano ETF Proposals
The U.S. Securities and Exchange Commission has officially postponed its review of Grayscale’s proposed Avalanche and Cardano ETFs, according to a recent regulatory filing. The Commission stated it will need additional time before making a final determination on Grayscale’s bid to convert its Avalanche Trust into a spot exchange-traded fund.
Similarly, the SEC is extending its evaluation of Grayscale’s attempt to amend its Cardano Trust into an ETF. The application, submitted earlier this year, triggered a standard 240-day review period. While the review is ongoing, the Commission noted that further analysis is required before any decision can be made.
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Prior to the delay, optimism around a Cardano ETF approval had surged. Decentralized prediction platform Polymarket placed the odds at 71%, reflecting growing investor confidence. However, the latest postponement has cast uncertainty over the timeline, cooling sentiment across the crypto investment community.
Looking ahead, the SEC is opening a new public comment window on the Avalanche and Cardano ETF filings, inviting further input as part of the regulatory process.
ADA and AVAX Slide as SEC Delays Avalanche and Cardano ETF Decisions
Cardano (ADA) and Avalanche (AVAX) both saw price declines following the U.S. Securities and Exchange Commission’s decision to delay its ruling on Grayscale’s proposed Avalanche and Cardano ETFs.
Cardano’s price slipped by nearly 4% over the past 24 hours, falling to $0.73 amid declining momentum. Trading volume also dropped by 14%, settling at approximately $588 million, even as Cardano’s transaction count reached 50,000 in May.
Avalanche mirrored the market’s cautious sentiment, with AVAX declining by 2.52% during the same period. Daily trading volume plummeted nearly 20%, reflecting broader investor unease sparked by the regulatory delay.
The SEC’s continued wave of spot crypto ETF postponements is fueling uncertainty across the market. In addition to the Avalanche and Cardano ETF delays, the Commission recently deferred a decision on the highly anticipated spot XRP ETF, signaling further scrutiny as more applications enter the queue.
