SEC Delays Grayscale Cardano (ADA) Spot ETF Decision Amid Regulatory Scrutiny and Market Uncertainty

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Grayscale Cardano (ADA) Spot ETF application, citing further review of investor protection and regulatory compliance. Grayscale seeks to convert its Cardano Trust into a spot ETF, with the review process initiating on February 24, 2025, and extending the final decision deadline to October 22, 2025. This move continues a pattern of the SEC extending review processes for altcoin ETFs, similar to previous delays for Avalanche (AVAX) and others, reinforcing its cautious approach toward non-Bitcoin, non-Ethereum crypto ETFs. Prior to the latest delay, trader sentiment was optimistic, with Polymarket reflecting a 71% chance of approval, mirroring responses seen after Bitcoin and Ethereum ETF approvals. The potential for a Cardano ETF has drawn speculation over increased institutional adoption. However, Cardano currently faces controversy over allegations of $600 million ADA misappropriation during the 2021 Allegra hard fork. Founder Charles Hoskinson denies wrongdoing and has promised an audit, though a timetable remains unclear. On the technical side, ADA is consolidating below the $0.765 resistance level after rebounding from $0.735 support, with a neutral RSI at 47.3 and price below the 50-day EMA, indicating weak momentum. Traders are closely monitoring $0.765 and $0.735 as key levels, as ongoing regulatory uncertainty continues to influence market sentiment and short-term price action.