SEC Extends Grayscale Cardano ETF Decision to October 2025

TLDR

• SEC has extended review of Grayscale’s Cardano ETF until October 26, 2025
• Similar delays affect Canary PENGU and WisdomTree XRP ETFs with October deadlines
• Canary Capital filed for new “American-Made” crypto ETF (MRCA) to track US-based digital assets
• Proposed ETFs would allow investors access to cryptocurrencies through traditional brokerages
• SEC continues cautious approach while evaluating investor protections and market structures

The Securities and Exchange Commission (SEC) has postponed decisions on several cryptocurrency exchange-traded funds (ETFs), extending review periods into October 2025. These delays impact proposed ETFs for Cardano, XRP, and the Canary PENGU token as regulators take additional time to evaluate market structures and investor protections.

The SEC has pushed back its decision on the Grayscale Cardano ETF to October 26, 2025. The proposal, originally filed in February by NYSE Arca, would list and trade shares under the exchange’s commodity-based trust shares rule. This extension gives regulators more time to review the filing’s amendments and public comments received earlier this year.

Grayscale, which already operates similar trusts for Bitcoin and Ethereum, argues that listing crypto trusts on public exchanges provides better transparency, pricing, and accessibility for investors. The proposed Cardano ETF would allow investors to gain exposure to ADA tokens without directly purchasing or storing them.

A successful listing would enhance mainstream access to Cardano through traditional brokerages. This could be important for Cardano as it seeks broader institutional adoption. On October 26, the SEC will either accept or reject the application to list the Grayscale Cardano ETF.

The delays follow a pattern seen with past crypto-related proposals. SEC officials state they need sufficient time to study the ETF proposals and related issues before making final determinations.

Other Delayed ETF Decisions

Similar extensions apply to the Canary PENGU ETF and WisdomTree XRP ETF, with new deadlines set for October 12 and October 24, 2025, respectively. By these dates, the SEC must approve, reject, or begin formal disapproval proceedings.

The Canary PENGU product was filed by Cboe BZX Exchange as a commodity-based trust. The original filing came in June, with two amendments in July to refine the proposal.

Meanwhile, Canary Capital Group has filed with the SEC to launch another product called the Canary American-Made Crypto ETF (MRCA). This proposed fund would track an index of cryptocurrencies created, mined, or primarily operated in the United States.

The American-Made Crypto ETF Proposal

The proposed MRCA fund would trade on Cboe BZX and track digital assets with American roots. The Made-in-America Blockchain Index will include only assets meeting strict criteria set by an oversight committee. Tokens must be eligible for custody with regulated US trusts or banks, maintain minimum liquidity, and trade on multiple established venues.

The trust plans to stake its proof-of-stake holdings through third-party providers, adding staking rewards to its net asset value. Stablecoins, memecoins, and pegged tokens are excluded from the index, which will undergo quarterly rebalancing.

According to market data, potential American-rooted projects for inclusion might be XRP, Solana, Dogecoin, Cardano, Chainlink, and Stellar. The trust will provide direct exposure without leverage or derivatives, with custody handled by a South Dakota-chartered trust company using cold storage for most assets.

This filing follows Canary’s recent applications for several other crypto ETFs, including a Trump Coin ETF tied to the US President’s memecoin. Canary has also filed for ETFs linked to SOL, XRP, SUI, and TRX, all currently under SEC review.

The latest ETF filing comes during a shift in US crypto policy. In July, former SEC Commissioner Paul Atkins launched “Project Crypto” to modernize regulatory guidelines for cryptocurrencies and tokenized assets. The SEC also recently clarified that certain liquid staking arrangements don’t fall under securities laws, potentially opening doors for staking-based ETFs.

Despite these developments, the SEC continues its cautious approach to crypto ETF approvals. This month alone, the agency delayed several decisions, including NYSE Arca’s Truth Social Bitcoin and Ethereum ETF, 21Shares and Bitwise’s Solana ETFs, and the 21Shares Core XRP Trust.

The SEC’s October deadlines will determine whether these proposed crypto ETFs can move forward or face further regulatory hurdles.

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