SEC Extends Evaluation of Grayscale’s ETF Applications
The U.S. Securities and Exchange Commission (SEC) has announced an extension for its evaluation of Grayscale’s applications for spot exchange-traded funds (ETFs) focusing on Avalanche and Cardano, pushing the decision deadline to July 15, 2025. According to a press release issued by the SEC on May 28, the agency deemed it necessary to allow additional time to review the proposed rule changes, which is permitted under Section 19(b)(2) of the Securities Exchange Act of 1934. This legislation allows the SEC to extend the standard review period, typically spanning 45 days.
Details on Grayscale’s ETF Proposals
Grayscale’s Avalanche ETF proposal, filed by Nasdaq on March 27, 2025, aims to have shares of the Grayscale Avalanche Trust listed under Rule 5711(d), which pertains to Commodity-Based Trust Shares. The proposal became publicly visible on February 16, 2025, when it was published in the Federal Register, initiating a statutory review timeline that initially set a decision date of May 31, 2025.
In a related development, Grayscale’s proposal for a Cardano ETF was submitted to NYSE Arca on February 10, 2025, intending to transform the existing Grayscale Cardano Trust into a spot ETF. An updated version of this filing followed on February 20 and was made available for public commentary starting February 28, launching a designated 240-day review period that will conclude on October 22, 2025.
Public Comments and Regulatory Caution
With the announced delay, both ETFs will now have a pivotal date of July 15, 2025, by which the SEC is expected to either approve, reject, or further assess these proposals. It is important to note that public comments will continue to be accepted throughout this timeframe, as the SEC actively seeks stakeholder feedback on these applications.
To date, no altcoin-focused ETFs have gained approval from the SEC, underscoring the regulatory body’s cautious stance on cryptocurrency-related products beyond Bitcoin and Ethereum. Under new leadership, the SEC has extended review periods for other crypto ETFs, including those linked to Solana, XRP, and Ethereum staking, indicating a broader trend of caution in this segment.
Earlier this month, the SEC also postponed decisions on multiple Solana ETF applications from firms such as Bitwise and VanEck, citing the need for further evaluation of whether those proposals align with regulatory compliance standards. Industry analyst James Seyffart of Bloomberg has suggested that these delays are typical within the SEC’s review processes for innovative financial products like cryptocurrency ETFs, predicting that conclusive decisions on many filings may extend into late 2025.
