- SEC postponed decisions on Grayscale Cardano ETF.
- Deadlines extended to October 2025;
- Market impacts seen with ADA price drop.
The Securities and Exchange Commission has postponed decisions on Grayscale’s Cardano ETF, Canary PENGU, and WisdomTree XRP, moving deadlines to October 2025, impacting key cryptocurrency players.
The delay sparks volatility in Cardano, PENGU, and XRP markets, raising concerns about regulatory challenges and investor protection mechanisms.
The SEC delayed its decision on various crypto ETFs, including Grayscale’s Cardano ETF, extending deadlines to October 2025. These delays reflect ongoing regulatory caution focusing on investor protection and market structure, impacting the affected tokens and market sentiment.
Grayscale Investments, the main applicant for the Cardano ETF, has a strong track record in launching trust products for Bitcoin and Ethereum. NYSE Arca submitted the Cardano ETF proposal, seeking a commodity-based trust structure for ADA.
The asset impact was immediate; Cardano’s price dropped by 6.67%, trading near $0.86. The decision has intensified short-term volatility for ADA and related tokens, yet the interest in regulated altcoin exposure remains significant.
Institutional flows into Grayscale products remain unchanged, with speculation about ADA’s potential appeal persisting. Grayscale’s credibility is supported by its established Bitcoin and Ethereum ETF products, which may become a positive signal if ADA’s proposal gets approval. As Gary Gensler, Chair of the SEC, noted, “The SEC remains committed to ensuring investor protection amidst evolving market structures.”
The SEC’s history shows consistent delays with altcoin-based ETFs, aligning with past patterns noted for Bitcoin and Ethereum. This history demonstrates the thorough regulatory review process involved, geared towards investor protection and market surveillance.
Potential outcomes include increased institutional adoption of ADA if approved, as on-chain data show growing Cardano DeFi TVL. Historical trends suggest these regulatory processes may conclude similarly to Bitcoin and Ethereum ETF approvals, after multiple extensions.
