SEC Slows Down VanEck’s Avalanche ETF Plans Again

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on VanEck’s plan to launch a Spot Avalanche (AVAX) Exchange-Traded Fund (ETF). This comes after Grayscale’s AVAX ETF faced similar challenges. These repeated delays are part of a broader trend where the SEC continues to take its time reviewing crypto-related investment products. This news has caused growing uncertainty among investors and companies in the crypto space. The VanEck Avalanche ETF Still Under Review In March, VanEck, a major investment firm, proposed creating a Spot Avalanche ETF . This fund would allow people to invest in the Avalanche blockchain native token AVAX, without directly buying it. However, instead of answering, the SEC has decided to extend its review of VanEck’s application. This is a common move by the agency when dealing with crypto ETFs. In May, the SEC refused to decide on Grayscale’s Spot Avalanche ETF. Grayscale, a leading asset manager, is working to offer more crypto-based investment products. The SEC has given itself until July 15, 2025, to review that proposal. These delays suggest that the SEC is still very cautious about crypto ETFs, especially those based on alternative cryptocurrencies like Avalanche, which are often called altcoins. Crypto Market Reacts Bearishly After the news of the delay, the price of Avalanche (AVAX) dropped by 3.57% in the last 24 hours, trading at $21.08 according to CoinMarketCap data. This drop happened not only because of the SEC’s decision but also due to a broader decline in the crypto market. Still, the delay added to investor concern and doubt about the future of crypto ETFs. Investors were hopeful that a spot ETF would help boost the value and use of AVAX. With the delay, many are now unsure of what will happen next. SEC Delays Avalanche ETF Decision to Weigh Investor Risks The SEC says it needs more time to study these proposals carefully. It wants to ensure investors are protected from risks such as price manipulation or a lack of regulation in crypto markets. Spot ETFs, which follow a cryptocurrency’s live price, can be more risky than other types of funds. At the same time, many experts and companies argue that the U.S. is falling behind. In April, Brazil became the first country to roll out an XRP ETF after approving the Solana ETF in 2024. Meanwhile, investors in the U.S. are waiting for EC’s approvals to have more access to these types of products. There is no new date yet for VanEck’s proposal, but the SEC is expected to take more time before making a final call. The next key date to watch is July 15, 2025, when the SEC will decide on Grayscale’s application. That decision could also affect what happens with VanEck’s ETF. The post SEC Slows Down VanEck’s Avalanche ETF Plans Again appeared first on TheCoinrise.com .

Source: The Coin Rise