US SEC Delays Grayscale Avalanche ETF Launch

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.

This is a developing story.

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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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