The U.S. Securities and Exchange Commission (SEC) has pushed back decisions on the Grayscale Cardano and Canary Pudgy Penguins ETFs to October 2025. This delay is due to concerns regarding market structure and investor protection.
Reasons for the Delay
The SEC decided to delay decisions on the ETFs due to ongoing regulatory scrutiny concerning crypto ETF proposals. This affects Grayscale, the world's largest digital asset manager, and Canary Capital Group, with proposals submitted to NYSE Arca and Cboe BZX.
Market Reaction to the News
The immediate market response to this announcement saw the price of the PENGU token decline by 12.65%. The market typically experiences volatility due to such delays, adding to the overall uncertainty.
Impact on Institutional Interests
Despite the postponed deadlines, institutional interest in spot ETF approvals continues, highlighting the need for improved asset custody solutions and regulatory clarity in digital markets.
In summary, the extended waiting period for the Grayscale Cardano and Canary Pudgy Penguins ETFs highlights the ongoing caution in the cryptocurrency market and the influence of regulatory frameworks on investor perceptions.
