SEC delays VanEck’s spot Avalanche ETF approval, prolonging uncertainty as AVAX falls 5.97% to $21.12 amid regulatory scrutiny.
The U.S. Securities and Exchange Commission (SEC) has deferred its ruling on VanEck’s proposed Spot Avalanche (AVAX) Exchange-Traded Fund (ETF), extending the review period until at least July 15, 2025. This delay follows a similar postponement for Grayscale’s spot Avalanche ETF, reflecting the SEC’s cautious approach to cryptocurrency-related investment products.
VanEck filed for the Spot Avalanche ETF in March 2025, aiming to provide investors with direct exposure to Avalanche (AVAX). This marks the firm’s fourth crypto ETF filing, following submissions for Bitcoin, Ethereum, and Solana ETFs as part of its strategy to expand regulated crypto investment options.
AVAX Price Falls Amid Regulatory Uncertainty
The SEC’s delay triggered a notable decline in Avalanche’s (AVAX) value, with the token dropping 5.97% to trade at $21.12 as of June 12, 2025. This dip aligns with broader market trends and investor unease fueled by the SEC’s indecision on crypto ETFs, including those for Hedera. The volatility underscores how sensitive cryptocurrencies like AVAX are to regulatory developments and market sentiment. Investors had anticipated that ETF approvals would enhance stability and legitimacy in the crypto market, but the delay has heightened uncertainty.
VanEck’s Push for Crypto ETF Expansion
VanEck’s Spot Avalanche ETF filing, supported by Nasdaq’s application to list and trade its shares, highlights the growing demand for regulated crypto investment vehicles. The firm’s efforts build on its successful Bitcoin and Ethereum ETF registrations and a pending Solana ETF application.
The SEC’s hesitation stems from concerns over market manipulation, liquidity, and investor protection, which have consistently delayed crypto ETF approvals. While the market remains optimistic about eventual listings, these setbacks frustrate investors and crypto advocates, leaving the timeline for approval uncertain.