tl;dr
The U.S. Securities and Exchange Commission (SEC) has delayed decisions on the Canary spot PENGU ETF and the Grayscale spot Cardano ETF, extending their review periods to October 12, 2025, and October 26, 2025, respectively. This postponement reflects ongoing regulatory caution regarding cryptocurre...
The U.S. Securities and Exchange Commission (SEC) has postponed decisions regarding the Canary spot PENGU ETF and the Grayscale spot Cardano ETF, signaling another hiccup in approving U.S. exchange-traded funds (ETFs) that offer direct exposure to cryptocurrency prices. These proposed ETFs aim to broaden participation in the crypto market, but regulators have opted to extend their review period to examine these financial products more thoroughly, reflecting ongoing caution towards crypto-based investments.
This delay aligns with previous SEC actions on similar crypto ETF proposals. The formal notice from the SEC indicates the need for additional time to evaluate market stability and investor protection concerns. The scrutiny focuses on ensuring compliance with legal and financial standards, emphasizing transparency, fair valuation, and safeguards against market manipulation, specifically for funds tied to Cardano (ADA) and PENGU. The SEC has set October 12, 2025, as the next deadline for the PENGU ETF decision, with options to approve, deny, or extend the review further. Conversely, for the Grayscale Cardano ETF, the final deadline is October 26, 2025, by which the SEC must make a definitive ruling without the possibility of extension.
The SEC’s explanation for extending the review process highlights that such actions are routine when deeper analysis is necessary or additional information is required from applicants or public commentary. This method mirrors the agency’s previous handling of cryptocurrency-related filings. Despite hopes from some market analysts for faster regulatory decisions, the timeline adheres to established SEC patterns.
Investors and industry watchers see the Canary and Grayscale ETF filings as important markers of progress toward mainstream adoption of cryptocurrency investment vehicles. These ETFs would enable U.S. investors to access the spot prices of digital assets like Cardano and PENGU without holding the actual tokens. The Grayscale filing meticulously describes the fund’s operations, NYSE Arca listing criteria, and market surveillance layers, alongside asset custody procedures, price determination, and compliance requirements. While SEC documents do not contain direct comments from officials, they stress the importance of evaluating market preparedness and addressing regulatory issues as these asset classes near broader public availability.
The postponement underscores regulator caution in introducing new digital asset products amid growing interest in spot crypto ETFs. Industry stakeholders argue these ETFs could enhance crypto transparency and accessibility, yet the extended review process postpones potential launch dates. Canary and Grayscale must now await regulatory closure, with decisions contingent on market developments and further information. For the moment, the official notices and Grayscale’s application demonstrate the SEC’s careful, measured approach to integrating emerging crypto investments into the U.S. financial marketplace.