SEC puts the brakes on these spot crypto ETFs

The SEC ain’t moving fast on this crypto ETF train. The big regulatory boss just hit pause again on two spot crypto ETFs, the Canary spot PENGU ETF and Grayscale’s spot Cardano ETF.

Despite the buzz and big hopes to get more everyday investors into crypto through these juicy ETFs, the SEC wants to dig a little deeper. So, no quick green light just yet.

The clock is ticking

These ETFs would let investors buy shares tied directly to crypto prices, no need to own the actual coins.

Sounds like a slick shortcut to the crypto party, right? But the SEC’s got reservations.

They want more time to check if these funds play by the rules on market stability, investor protection, and transparency.

They don’t want any funny business, no market manipulation, fair valuation, the whole shebang.

The SEC’s extended review process is standard procedure when the regulators need to dot their i’s and cross their t’s. For the PENGU ETF, the next decision window falls in October. The SEC can give it a go, shoot it down, or push the deadline again.

But for Grayscale’s Cardano ETF, the clock’s ticking with a strict October 26, 2025 cut-off. No more extensions on that one. Make or break time.

Mainstream acceptance

This delay follows a familiar pattern, the SEC has bottled up many crypto ETF proposals before. Still, many in the crypto biz hoped for some quick progress this time.

Nope. The regulators are sticking to their cautious playbook. But why all the fuss? Well, tokenized assets like these ETFs are shaking up traditional markets.

They let investors step into crypto without wrestling with wallets and keys. Industry watchers see these ETFs as stepping stones for crypto’s mainstream acceptance, especially for the older crowd easing into digital finance.

Grayscale’s filing spells out the nuts and bolts, how the fund will operate, its rules for NYSE Arca, how prices get figured, and the layers of surveillance to keep things clean.

It’s all about proving market readiness and keeping investors safe. But no SEC spokespersons popped up with comments. The official word? More analysis needed, more info wanted, and market readiness still under scrutiny.

Patience

For investors, this means patience, guys. The SEC’s taking its sweet time balancing risk and innovation.

While the crypto community cheers for easier access and more transparency, regulators are playing the long game.

Canary and Grayscale? They gotta sit tight and wait for the verdict. Future launches depend on how the market behaves and what new info surfaces.

So, keep your eyes on the prize, but don’t hold your breath. We’re talking about the SEC.