The U.S. SEC has once again delayed its decision on VanEck's ETF application, impacting the price of the AVAX token.
Regulatory Issues with VanEck's ETF
Originally filed in March 2025, the proposal for a spot ETF tracking Avalanche was expected to be decided on June 12, but has now been pushed to July 15, 2025. The SEC cites ongoing concerns about market manipulation and investor protection.
Market Reaction to Delay
Following the announcement of the delay, AVAX's price dropped by 5.97%, resting around $21.12. Investors who anticipated a favorable decision appear to have reassessed their positions, leading to a short-term sell-off.
Prospects for ETF and Institutional Interest
Despite the delays, interest in VanEck's ETF remains high among institutional and retail investors. Nasdaq has also filed to list this ETF, indicating sustained interest in cryptocurrencies through regulated financial products.
The prolongation of the review period for VanEck's ETF application highlights the instability of the regulatory environment for cryptocurrency products, which may influence investor sentiment.
