SEC pushes back decision on multiple ETH ETFs until May 2024
The Securities and Exchange Commission (SEC) of the United States has decided to delay its ruling on various Ethereum-based exchange-traded funds (ETFs) until May 2024. This announcement was made through regulatory filings on December 18. The postponed decisions include the Hashdex Nasdaq Ethereum ETF, the Grayscale Ethereum Futures ETF, the VanEck spot Ethereum ETF, and a spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares.
The Hashdex Ether ETF is distinctive in its approach, as it aims to combine both spot Ether and futures contracts. On the other hand, Grayscale’s Ethereum Futures ETF is perceived as a strategic move to eventually convert its Ethereum Trust into a spot Ethereum ETF, which has gained significant attention within the industry.
The SEC has stated that it will initiate proceedings to gather more public input on the potential listing of these ETFs. This demonstrates the agency’s commitment to conducting thorough scrutiny and engaging with the public before reaching a final decision.
James Seyffart, an ETF analyst at Bloomberg, has predicted these delays, with the regulator expected to make final decisions by late May. This aligns with the broader market expectations, as the community has been closely following the SEC’s stance on cryptocurrency-based ETFs.
Previously, the SEC has approved ETFs based on ether futures, but it has not yet given the green light to spot ether or mixed fund ETFs. In October, nine futures-based products received simultaneous approval, which was a significant development in the industry.
The ongoing debate and anticipation in the crypto sector extend beyond Ethereum ETFs. The market is eagerly awaiting the SEC’s decisions on 13 spot Bitcoin (BTC) ETFs currently under review. Bloomberg analysts Seyffart and Eric Balchunas suggest that a decision on these Bitcoin ETFs could come as early as January 10, 2024. Both analysts estimate a 90% chance of approval for a spot Bitcoin ETF, which has injected optimism into the market, particularly regarding institutional access to Bitcoin.
In the past six months, Bitcoin has experienced a price increase of over 44%, while Ether (ETH) has also seen a notable rise of 16.8% during the same period, according to data from CoinMarketCap.
Investors and industry experts have expressed concerns that delays in approving Ethereum ETFs are hindering market development and limiting investors’ access to diversified investment opportunities. However, the SEC stands firm in its commitment to conducting thorough evaluations to prevent fraudulent activities and protect investor interests.
As the crypto community awaits the SEC’s final decisions, the agency encourages public participation in providing comments on the proposed rule changes for Ethereum ETFs. This involvement is seen as a crucial part of the regulatory process, as it shapes the future landscape of cryptocurrency investments in the US market.
