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The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on VanEck’s Spot Avalanche (AVAX) ETF application, extending the review deadline to July 15, 2025. This latest deferment adds to growing investor frustration as regulatory clarity remains elusive. Following the announcement, the price of AVAX dropped by 5.97%, settling around $21.12 as of June 12.
VanEck’s ETF Plans Meet Another Regulatory Roadblock
Originally filed in March 2025, VanEck’s proposal aimed to introduce a spot ETF tracking the performance of Avalanche. The SEC was expected to issue a decision on June 12 but opted to extend its evaluation period, citing similar concerns it had in past cases—particularly with Grayscale’s proposals. Turkish NY Radio reports that the new decision date of July 15 is now a key milestone on the crypto calendar.
VanEck, already known for launching ETF products linked to Bitcoin, Ethereum, and Solana, sees the Avalanche ETF as a natural extension of its existing offerings. However, the SEC continues to raise concerns over potential market manipulation, liquidity constraints, and investor protection—core hurdles that persist in the spot crypto ETF landscape.
Price Reacts Sharply to Regulatory News
The delay had immediate implications for AVAX, which dropped nearly 6% within 24 hours of the SEC’s announcement. Investors who had anticipated a green light from regulators appear to have reevaluated their positions, leading to a short-term sell-off.
This reaction underscores how sensitive AVAX and similar digital assets are to regulatory developments. As Turkish NY Radio emphasizes, the broader market environment is equally susceptible to such news. While institutional and retail interest in VanEck’s ETF remains high, repeated delays may begin to test investor patience.
Interestingly, Nasdaq has also filed to list this ETF, signaling continued institutional interest in expanding crypto access through regulated financial products. But with the timeline pushed further into the summer, expectations are being reset.
