Key Takeaways:
- The U.S. SEC has extended its review period for VanEck’s proposed AVAX ETF, following a similar delay with Grayscale’s application, signaling continued regulatory hesitation toward altcoin ETFs.
- Avalanche’s native token, AVAX, dropped nearly 6% to around $21.12 following the news, reflecting investor anxiety and broader market volatility surrounding ETF approval timelines.
The U.S. Securities and Exchange Commission (SEC) has once again hit pause on the approval of a crypto-related exchange-traded fund (ETF), this time delaying its decision on VanEck’s proposed Spot Avalanche (AVAX) ETF. The move follows a similar postponement made in May 2025 regarding Grayscale’s Spot Avalanche ETF, highlighting a continuing pattern of regulatory hesitation in the digital asset space.
VanEck, a prominent investment management firm with a growing footprint in the crypto sector, had submitted its application to launch a Spot Avalanche ETF as part of the broader push to introduce more altcoin exposure to traditional markets. However, the SEC has opted to extend the review period, citing the need for additional evaluation—a common procedural step that effectively stalls immediate market progress.
The SEC’s cautious stance comes amid an already jittery market. AVAX, the native token of the Avalanche blockchain, has dropped 5.97% from its previous intra-day high and is currently trading at approximately $21.12. The dip reflects broader market volatility and investor concern over delayed regulatory clarity.
Analysts suggest the delay underscores a broader reluctance by the SEC to greenlight crypto ETFs beyond the more established Bitcoin and Ethereum products. While spot ETFs for major cryptocurrencies have seen growing acceptance, newer tokens like Avalanche face greater scrutiny due to perceived risks related to liquidity, custody, and market manipulation.
Also Read: Avalanche (AVAX) Price Under Pressure as Whale Activity Drops and Short Positions Surge
The next major deadline to watch is July 15, 2025, when the SEC is expected to issue a decision on Grayscale’s Spot Avalanche ETF. Market participants will be closely monitoring regulatory signals leading up to this date, as the outcome could set a precedent for future altcoin-based investment products.
In the meantime, the crypto community is left navigating an uncertain regulatory environment, with ETF hopefuls like VanEck and Grayscale in limbo. As demand for institutional-grade exposure to a wider range of digital assets grows, pressure is mounting on U.S. regulators to provide clearer guidelines and more timely decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
