The US Securities and Exchange Commission (SEC) has delayed its decisions on the Pengu and Cardano Exchange Traded Funds (ETFs), pushing the review period to October 2025. This move has sparked uncertainty in the altcoin market, with the prices of ADA and Pengu experiencing fluctuations.
Background on the Delayed ETFs
The Canary Spot Pengu ETF, submitted by Canary Capital, aims to track the performance of the Pudgy Penguine (Pengu) Memecoin token, combined with Pudgy Penguins non-fungible tokens (NFTs). The SEC has extended the review period for this ETF from August 28 to October 12, 2025, citing concerns over investor protection, valuation, and compliance. This unique blend of Memecoin and NFTs has raised evaluation and compliance concerns, prompting the regulatory body to take a cautious approach.
Impact on the Market
The delay in the SEC’s decision has led to a market reaction, with Pengu’s price dropping by 11% following the announcement. This reflects the growing uncertainty among investors about the regulatory approval of unconventional assets. The Cardano ETF, proposed by Grayscale, has also been delayed, with the SEC pushing the deadline from August 27 to October 26, 2025. The regulatory authority has cited ongoing concerns over investor protection and market structure.
Industry Implications
The delays in the SEC’s decisions on the Pengu and Cardano ETFs highlight the regulatory body’s cautious approach to cryptocurrency-related funds. This tactic could lead to a series of ETF decisions in October, influencing institutional access to cryptocurrency. Although the sentiment towards ADA and Pengu has been impacted in the short term, there remains strong institutional demand for crypto exposure. According to analysts, this demand is expected to continue, despite the uncertainty surrounding the regulatory approval of these ETFs.
For more information on the SEC’s delay of the Pengu and Cardano ETFs, please visit https://crypto.news/u-s-sec-delays-decision-pengu-ada-etf-2025/
