Grayscale’s Cardano ETF Face SEC Delay

• The SEC has delayed Grayscale’s Cardano ETF until July 15 as it waits for public comments.
• The news led to a drop of almost 4% in Cardano’s price.
• It also delays another Grayscale ETF, the Avalanche, for the next SEC review on July 13.

Grayscale’s proposed spot Cardano ETF has been delayed by the US Securities and Exchange Commission, which agreed to delay its decision until July 15, 2025. The SEC has extended the review period under Section 19(b)(2) of the Securities Exchange Act to determine whether the ETF is consistent with investor protection and market compliance standards.

The Grayscale filing aims to turn Grayscale Cardano Trust into a spot exchange-traded fund. The original application to NYSE Arca was filed on February 10, amended on February 20, and formally opened to public comment on February 28. The next action point has been shifted to mid-July, and the 240-day legal window now runs through October 22 due to the SEC’s delay.

The Commission said that the extension is needed to consider public feedback and the proposal’s implications. As a result of the announcement, ADA’s price dropped almost 4% to $0.73 as transaction volume fell 14%.

Market Sentiment Dips but Long-Term Confidence Holds

Before the delay, there was optimism across prediction platforms and among analysts. Bloomberg analyst Eric Balchunas assigned a 75% likelihood of confirmation, and according to Polymarket, more than 70% of its users also expected one. The rally was abruptly halted when that delay took the shine off the confidence reflected in market activity.

Although short term, Cardano remains in a consolidation range of around $0.65 to 85$ respectively. Currently, ADA trades for roughly $0.75, up 0.58% daily, but with a healthy trading volume of $673.66 million. The continuous move within a defined range often implies a build-up phase, which normally accompanies the breakout after market stability returns.

Recent whale activity backs that up, with more than 180 million ADA accumulated in just the past week. Large holder behavior is a good leading indicator of how the price will move during a consolidation phase.

On-chain data also paints a stable picture. Data from DeFiLlama shows that Cardano’s total value locked in decentralized finance applications is $346.12 million. Despite being smaller than Ethereum or Solana, it shows the network’s adoption curve continues in the DeFi sector.

Avalanche ETF Faces Similar Fate

The SEC has similarly delayed a decision on Grayscale’s proposed ETF for Avalanche, along with Cardano. The application will now be reviewed on July 13, 2025, to convert the Grayscale Avalanche Trust into a spot ETF. However, the agency said it needed time to analyze public comment before making a decision.

After the news, AVAX slumped 2.52%, and trading volumes dropped by nearly 20%. The market’s reaction mirrored that of Cardano, and the market was also sensitive to regulatory news around the altcoin ETF space. The SEC is supposed to either make a definitive ruling, commence proceedings, or grant another extension by mid-July deadlines.