U.S. SEC delays decision on Canary’s PENGU ETF and Grayscale’s ADA ETF

The SEC has postponed decisions on the PENGU and Cardano exchange-traded funds, extending reviews into October and keeping altcoin markets on edge.

The U.S. Securities and Exchange Commission has postponed its rulings on the Canary Spot PENGU ETF and Grayscale’s Spot Cardano ( ADA ) ETF, according to an Aug. 25 filing .

The decisions, originally due in late August, are now extended to October 2025, indicating the regulator’s cautious approach to cryptocurrency-related exchange-traded funds.

Canary Spot PENGU ETF faces extended review

The Canary Spot PENGU ETF, filed by Canary Capital, seeks to combine Pudgy Penguins ( PENGU ) memecoin tokens with Pudgy Penguins NFTs. Its deadline was pushed from Aug. 28 to Oct. 12, 2025. As the SEC considers issues related to investor protection, valuation, and compliance, this hybrid structure has come under regulatory scrutiny. 

“The Commission finds it appropriate to designate a longer period within which to take action,” the SEC stated in its filing, emphasizing the need for a thorough review.

The market reaction was swift. PENGU’s price dropped 11% following the announcement, reflecting growing investor unease about whether unconventional assets can gain regulatory approval.

Grayscale Cardano ETF delay extends to October

The SEC also postponed its decision on Grayscale’s Cardano ETF, intended to convert its ADA Trust into a spot ETF, moving the deadline from Aug. 27 to Oct. 26, 2025. The regulator cited ongoing concerns about investor protections and market structure.

This mirrors the agency’s approach with other altcoin-focused ETFs, including XRP ( XRP ) and Dogecoin ( DOGE ), where rulings have been repeatedly pushed back.

Market and industry implications

The delays highlight the SEC’s reluctance to fast-track crypto ETFs involving altcoins or complex structures. For newer assets like PENGU  or even established altcoins such as Cardano, the regulatory wait adds uncertainty .

This tactic, according to analysts, might lead to a series of ETF decisions in October that could influence institutional access to cryptocurrency assets. Although sentiment toward ADA and PENGU has soured in the short term, there is still a lot of interest in regulated altcoin exposure.