Market News

SEC Delays Approval for Avalanche and Hedera ETFs, Spurring Market Reaction

The U.S. Securities and Exchange Commission (SEC) has postponed decisions on significant crypto ETFs, specifically the Spot Avalanche ETF from VanEck and the Spot Hedera ETF from Grayscale.

This delay, which pushes final decisions to mid-July and November 2025 respectively, adds uncertainty for investors seeking regulatory clarity on crypto assets.

After the announcement, the price of Avalanche (AVAX) plummeted by 10.82%, while Hedera (HBAR) saw a decrease of 9.32%, illustrating the sensitivity of crypto markets to regulatory updates.

Increased trading volumes were reported for both assets, with a 33.34% uptick for AVAX and a staggering 58% for HBAR, indicating heightened investor activity amidst the news.

The SEC's decision to open a public comment period for the Hedera ETF signifies a cautious approach, as it seeks expert opinions on the fund's viability before making a final ruling.

Despite the setbacks, optimism persists among market analysts, predicting an 80% likelihood of approval for Hedera by late 2025, and a remarkable 90% for Solana and Litecoin ETFs.

Bloomberg's Eric Balchunas even suggests a potential "altcoin ETF summer," where multiple altcoins could receive approval concurrently.

As the crypto community awaits these approvals, the need for clear communication from the SEC remains paramount for restoring investor confidence.

The ongoing regulatory process illustrates the complexities involved in integrating cryptocurrency products into traditional financial markets, emphasizing a cautious but hopeful outlook for the future.

Ultimately, the SEC's decisions will shape the landscape of cryptocurrency investment, making the coming months critical for market participants.