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SEC’s Cautious Approach Puts PENGU and Cardano ETFs on Hold
SEC – The U.S. Securities and Exchange Commission (SEC) has postponed its rulings on two highly anticipated altcoin exchange-traded funds: the Canary Spot PENGU ETF and Grayscale’s Spot Cardano ETF. According to the agency’s August 25 filing, the decisions, originally expected in late August, have now been extended into October 2025, signaling the regulator’s cautious stance toward crypto-related ETFs.
Canary Spot PENGU ETF Faces Regulatory Scrutiny
The Canary Spot PENGU ETF, submitted by Canary Capital, aims to merge Pudgy Penguins memecoin tokens with Pudgy Penguins NFTs in a hybrid structure. Initially set for an August 28 deadline, the review has been pushed back to October 12, 2025. The SEC highlighted the need for additional time to evaluate investor protection, valuation, and compliance issues.
The market reaction was immediate: PENGU’s price fell by 11% following the announcement, reflecting investor uncertainty over whether unconventional crypto assets can secure regulatory approval.
Grayscale’s Cardano ETF Also Delayed
The SEC also delayed its decision on Grayscale’s Cardano ETF, which seeks to convert the existing ADA Trust into a spot ETF. The deadline has been extended from August 27 to October 26, 2025. As with PENGU, the regulator pointed to concerns about market structure and investor protections.
This decision follows the same cautious pattern the SEC has taken with other altcoin-focused ETFs, including those tied to XRP and Dogecoin, where rulings have repeatedly been postponed.
Market Implications Ahead
The delays underscore the SEC’s reluctance to accelerate approvals for ETFs involving altcoins or complex asset structures. For newer tokens like PENGU and even established names such as Cardano (ADA), the uncertainty is leaving investors on edge.
Analysts suggest that October could become a decisive month, with multiple ETF rulings potentially shaping the future of institutional access to altcoins. While short-term sentiment has soured, the appetite for regulated crypto exposure remains strong.
[…] momentum on a 0–100 scale, reached a higher high between November 10 and December 1, while PENGU’s price recorded a lower high. This hidden bearish divergence suggests that although buyers are […]