The U.S. SEC has officially delayed its decision on the Cardano and Avalanche ETFs applied by Grayscale. The decision was to be declared on 29the of May, but it has been postponed to July 15 2025. The SEC announced this on their official website. The overall timeline for a final decision is the same, October 22, which is 240 days from the initial filing acknowledgement.
Source: SEC
Cardano, Avalanche Spot ETFs on Hold
This delay adds to the growing list of crypto Exchange Traded Funds waiting for the SEC approval. Over the past few weeks, the agency has postponed rulings on several proposals tied to major altcoins like Dogecoin, XRP, Litecoin, and Solana. After the announcement both the currencies did not get any major downward move. Rather both are increasing. Cardano is currently increasing with 0.67% within the last 24 hours reaching $0.7568. On the other hand, Avalanche is trading at $23.96 with an increase of 2.37% in a day as per the CoinMarketCap.
Source: CoinMarketCap
Growing List of Postponed ETFs
In this month only, the commission has already postponed several other high-profile crypto ETF decisions:
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May 23: Spot ETFs for XRP and Litecoin by CoinShares were delayed until August 24. The agency asked for public comments before making a final decision.
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May 21: Grayscale and 21Shares’ applications for Dogecoin and XRP ETFs were also held back. The new review period goes into Q3 or Q4 of this year.
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May 20: The SEC extended its review of Solana ETF proposed by Bitwise and 21Shares, stating the requirement for more legal analysis.
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May 14: Solana and Litecoin ETFs proposed by Grayscale, to be on NYSE Arca were also delayed.
The agency has now pushed back at least 8 crypto funds proposals in May alone. These contain applications for Cardano, Avalanche, Solana, Dogecoin, XRP, and Litecoin. These are applied by major organisations like Grayscale, 21Shares, CoinShares, and Bitwise.
Why the Delay?
Based on the SEC’s recent announcement, the agency requires more time to analyze and review Grayscale’s application to turn its Cardano Trust into a spot ETF. Grayscale first applied for the Cardano Spot ETF conversion early in 2025, and the commission accepted this application on 24 February. From here the 240-day review started.
The same goes for Grayscale’s Avalanche Trust. The SEC stated that it would take more time to review in order to better gauge the feasibility of both the proposals. Although this does not indicate the proposals are being turned down, this does indicate regulators are proceeding with caution.
The commission is now taking the first step to opening up public comments, seeking feedback and commentary regarding the risks, benefits, and legal aspects related to converting these crypto trusts into ETF. This is the SEC’s usual process, particularly when it comes to new or uncertain spaces such as digital assets.
Some traders were especially optimistic about the Cardano ETF, with prediction markets like Polymarket showing a 67% chance of approval before the delay.
Source: Polymarket
What This Means for Crypto Investors
These delays have caused frustration among crypto investors and fund managers who see ETFs as a safer and more accessible way to invest in digital assets. While the delays don’t mean the SEC will deny the applications, they do slow down the process and dampen enthusiasm. Investors will now have to wait longer for any clear answers.
Until then, the SEC is collecting feedback and examining whether these Exchange Traded Funds meet regulatory standards. With the final deadline for many applications still months away, all eyes are on the Commission’s next move.
