According to a document from the SEC, the Commission has chosen to postpone its decision on Grayscale's application to launch an Avalanche ETF. Grayscale seeks to list shares of its Avalanche Trust on Nasdaq, but the SEC states that a longer review period is required.
The securities regulator had previously delayed Grayscale's Avalanche ETF application on May 29. In light of the new delay, the SEC is now initiating a process to determine whether Grayscale's application should be approved or rejected.
Meanwhile, the SEC has opened a window for public comments on Grayscale's application, being attentive to the legal and political issues raised.
"The Commission seeks comments on whether the proposal to list and trade shares of the Trust, which would hold AVAX, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns that the Commission has not previously considered," the document states.