After a string of regulatory approvals, Grayscale has hit a roadblock in its application for an Avalanche ETF launch. The US Securities and Exchange Commission (SEC) has delayed its decision for the spot ETF, calling for written comments as the AVAX price soars.
US SEC Holds Off Grayscale’s Avalanche ETF Decision
According to an SEC document, the Commission has opted to postpone its decision on a Grayscale application to launch an Avalanche ETF. Grayscale is seeking to list shares of its Avalanche Trust on the Nasdaq exchange, but the SEC says a longer review period is necessary.
The securities regulator had previously delayed Grayscale’s Avalanche ETF application on May 29. Flowing from the new delay, the SEC is now instituting a proceeding to determine if Grayscale’s application should be approved or denied.
In the meantime, the SEC has opened the window for public comments on Grayscale’s application, keeping an eye on legal and policy issues raised.
“The Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold AVAX, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission,” read the document.
Recently, the SEC has delayed Fidelity’s Solana ETF launch, eyeing the launch of new ETF approval guidelines.
Despite the delay, the price of AVAX has risen by nearly 6% to trade at $19.77 over the last day. Daily trading volume is up by 68% to inch closer to the $600 million mark, braving the regulatory headwinds from the SEC’s delay. The rest of the cryptocurrency markets are rallying, with Bitcoin setting a new all-time high of $113,000 and Ethereum inching toward $3,000.
Moving on from the Commission’s delay, Grayscale has updated its list of digital assets for investors. Per the latest disclosure, Grayscale is considering the inclusion of smart contract platforms Aptos, Toncoin, and Arbitrum into its investment products, while considering Binance Coin, Hyperliquid, and Maple Finance.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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Source: https://coingape.com/us-sec-delays-grayscale-avalanche-etf-launch/