The post Sonic CEO Keeps ETF Allocation Paused appeared on BitcoinEthereumNews.com.

Sonic Labs paused its ETF token plan after governance approval, as lower prices would require large token issuance. The Sonic ecosystem adjusted its strategy after leadership reviewed earlier governance decisions and carefully considered changing market conditions. The update follows a public statement from the company’s chief executive regarding paused ETF actions. The statement addressed past approvals, current pricing, and revised conditions for future execution. The approach centers on supply control, governance alignment, and institutional market access. Governance Approval And Initial ETF Planning Earlier in the year, Sonic governance approved an ETF allocation during stronger market conditions. The approval allowed up to fifty million dollars in S tokens for a potential United States ETF. Earlier this year, when $S was trading at higher levels, governance gave the green light to an ETF allocation. As the market cooled, we held off on minting those tokens, and no ETF tokens have been issued. When I came on board as CEO in late September, I chose to keep it paused.… https://t.co/LC6gWkgTdq — Mitchell Demeter (@MitchellDemeter) December 27, 2025 The plan aimed to support regulated institutional access and expand market participation. Execution was expected soon after approval, based on prevailing token prices then. However, market conditions weakened, and the S token price declined over time. As prices fell, the team decided not to mint tokens immediately. No ETF tokens were issued during this period, and supply levels remained unchanged. This decision maintained alignment with governance intent and market stability. Leadership Review and Decision To Pause Execution When Mitchell Demeter joined as chief executive in late September, the ETF plan remained paused. The leadership reviewed the earlier proposal against updated market data and supply considerations. At current prices, execution would require issuing a very large number of tokens. This outcome differed from the original expectations approved…

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Filed under: News - @ December 28, 2025 12:02 am