- Grayscale Cardano’s Cardano ETF has been delayed until the 15th of July as SEC waits to hear public feedback.
- Cardano’s price dropped almost 4% as a result of the announcement.
- This also means that the SEC has to review another Grayscale exchange-traded fund, Avalanche for its next SEC inspection on July 13th.
Grayscale has delayed its proposed Cardano ETF by US Securities and Exchange Commission. They agreed to defer their decision until July 15, 2020. The SEC is extending the period of review under Section 19.b.(2) to assess whether or not the ETF will meet investor protection and compliance standards.
Grayscale’s filing is aimed at converting Grayscale Cardano Trust to a spot ETF. Original application filed to NYSE Arca on 10 February, amended on 20 February and formally open to public comments on 28 February. Due to SEC delays, the next step has now been moved to July. The 240 day legal period will run through October 22, 2018.
The Commission stated that an extension would be necessary to allow for public input and consider the proposals implications. In response to the announcement ADA’s price The price of a transaction fell by 14%, or almost 4%.
The market sentiment dips, but long-term confidence holds
Before the delays, analysts and platforms that make predictions were all optimistic. Bloomberg analyst Eric Balchunas gave a probability of 75% of confirmation and Polymarket reported that more than 70% users expected it. This delay slowed down the rally and drained the optimism reflected by the market.
Short term is not the only consideration. Cardano A consolidation range is still around $0.65-85$. ADA currently trades at around $0.75. It is up 0.58% per day, with a good trading volume of 673.66 Million. Continuous movement in a given range usually implies an accumulation phase which is normally associated with the breakout. market stability returns.
Recent Whale Activity backs That’s more than 180,000,000 ADA accumulated just in the last week. It is important to look at the behavior of big holders as a leading indicator.
Data from the on-chain also shows a picture of stability. DeFiLlama data shows Cardano has a total of $346.12 millions locked up in its decentralized applications. Although smaller than Ethereum or Solana it still shows that the network is continuing to grow in the DeFi industry.
Avalanche ETF Faces Similar Fate
SEC also delayed its decision regarding Grayscale’s ETF proposal for Avalanche and Cardano. This application to transform the Grayscale Avalanche Trust in a spot ETF will be considered on July 13th, 2025. The agency stated that it would need time to review public comments before making any decisions.
AVAX’s trading volume dropped nearly 20% after the announcement. Market reaction was similar to Cardano’s, but also sensitive towards regulatory updates in the space of altcoin ETFs. SEC deadlines are mid-July. The SEC can either give a ruling or start proceedings.
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Source: blockchainreporter.net
