SEC, Ethereum announced that it has postponed its decision on several exchange-traded funds (ETFs) until May 2024.
This announcement came via regulatory filings filed on December 18. The postponed decisions include those related to the Hashdex Nasdaq Ethereum ETF, Grayscale Ethereum Futures ETF, VanEck spot Ethereum ETF, and a spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares.
UPDATE: SEC Going early with delay orders for @hashdex & @Grayscale #Ethereum ETF filings. Neither were due until Jan 1, 2024.
Maybe just clearing the queue before the holidays? pic.twitter.com/LdZQxGh43L
NEWS CONTINUES BELOW— James Seyffart (@JSeyff) December 18, 2023
Hashdex ETH ETF is unique in its approach that aims to include both spot ETH and futures contracts. Meanwhile, Grayscale’s Ethereum Futures ETF is perceived as a strategic move to eventually convert its Ethereum Trust into a spot Ethereum ETF, a view that has gained a lot of traction in the industry.
The SEC announced that it will initiate proceedings to gather further public input regarding the potential listing of these ETFs. It’s a move that underscores the SEC’s commitment to comprehensive review and public participation before making a final decision.
These delays are expected, and final decisions from the regulator are expected by late May, Bloomberg ETF analyst James Seyffart said.
Update: There it is. Delay order for @ARKInvest oath @21Shares on their spot #Ethereum ETF filing. Expected and was due by December 26th. Final date for these are in late May. https://t.co/Zs6Zsd4uKj pic.twitter.com/9u0nNiPD9O
— James Seyffart (@JSeyff) December 18, 2023
The Community Follows Closely
The community is closely monitoring the SEC’s stance on cryptocurrency-based ETFs. Therefore, Seyffart’s views are in line with his expectations in the broader market.
The SEC had previously approved ETH futures-based ETFs but not spot ether or hybrid fund ETFs. In particular, in October, nine futures-based products received simultaneous approval, marking a significant development in the industry.
Crypto The ongoing debate and expectations in the industry extend beyond Ethereum ETFs. The market is closely watching the SEC’s decisions regarding the 13 spot Bitcoin (BTC) ETFs currently under review.
Bloomberg analysts Seyffart and Eric Balchunas suggest that the decision on these Bitcoin ETFs could be made as early as January 10, 2024.
Both analysts estimate the probability of a spot Bitcoin ETF being approved at 90%. This high probability has injected optimism into the market, especially regarding institutional access to Bitcoin.
According to CoinMarketCap data, Bitcoin has experienced a price increase of over 44% in the last six months, while Ethereum (ETH) has experienced a significant increase of 16.8% in the same period.
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 maintains its stance on comprehensive evaluation to prevent fraudulent activities and protect investor interests.
While the crypto community awaits final decisions from the SEC, the agency is encouraging public participation in commenting on proposed rule changes for Ethereum ETFs. This involvement is seen as a vital part of the regulatory process shaping the future landscape of cryptocurrency investments in the US market.