The U.S. Securities and Exchange Commission (SEC) has delayed its decisions regarding two cryptocurrency investment funds (ETFs), raising increasing uncertainty in the market.
Avalanche ETF Decision Pushed to Mid-July
A popular asset management firm had applied for a Spot Avalanche ETF in March 2025. The objective of this crypto product is to allow people to invest in Avalanche (AVAX) through conventional stock markets, without having to purchase the crypto directly. However, the SEC stated it will not make a final decision until July 15, 2025, which adds caution from the regulator regarding investment products based on cryptocurrencies. Following this announcement, the price of AVAX dropped 10.82%, reaching $18.89, while trading volume rose 33.34% in the last 24 hours.
Grayscale’s Hedera ETF Also Faces Delay
The SEC also delayed its decision on Grayscale’s Spot Hedera ETF. This application is under review, and instead of providing approval or rejection, the SEC has decided to start a public comment period. This allows individuals and experts to express their views on the suitability of a Hedera investment product. After this delay, prices decreased by 9.32%, going to $0.1542, while trading volume increased by 58%. The agency now takes until November 11, 2025, to reach a final decision.
Hope Remains for ETFs Approvals in 2025
Despite the consecutive delays, market experts remain optimistic. According to Bloomberg Intelligence data, there is an 80% probability of the Grayscale Hedera approval during the later part of 2025. Analysts also anticipate a 90% probability of approval for Solana and Litecoin ETFs. In anticipation of further ETF approvals, some expect insights into a potential 'altcoin ETF summer,' with Solana likely to be the first approval among altcoins.
The SEC's consecutive delays have shaken investor optimism, but hopes for ETF approvals in 2025 persist. The cryptocurrency community is eagerly awaiting signals from the commission.
