The SEC Delays Judgment on Ether-based ETFs Until 2024
The United States Securities and Exchange Commission (SEC) has announced that it will postpone its decision on various exchange-traded funds (ETFs) based on Ether (ETH) until May 2024. This development has significant implications for the cryptocurrency sector, particularly for proposals such as the Grayscale Ethereum Futures ETF and the Hashdex Nasdaq Ethereum ETF.
The Delay and its Implications
Regulatory documents released on December 18 revealed the SEC’s decision to extend the review period for these ETFs. The Hashdex Ether ETF, which plans to hold both spot Ether and futures contracts, and Grayscale’s Ethereum Futures ETF, which could potentially transform its Ethereum Trust into a spot Ethereum ETF, are among the most affected by this delay. Additionally, the SEC has also postponed its decision on the VanEck spot Ethereum ETF and a similar ETF submitted by Cathie Wood’s ARK Invest; 21Shares.
Public Input and Previous Approvals
The SEC is currently seeking public feedback on whether these ETFs should be listed. This cautious approach by the regulatory authority towards approving spot or mixed-type Ethereum products is evident from this step. Despite previously approving Ethereum futures ETFs, the SEC has not yet given its approval to any spot or mixed-type Ethereum ETFs.
Market Analyst Perspectives
According to James Seyffart, an analyst for Bloomberg ETFs, these delays were expected and were likely to occur before December 25. He predicts that the final decision from the SEC will be made by the end of May 2024.
The SEC’s decision to postpone the implementation of cryptocurrency-based financial products highlights the regulatory obstacles and scrutiny faced by these products. As the cryptocurrency market continues to evolve, regulatory agencies like the SEC are closely monitored for the potential impact their decisions may have on market dynamics and investor participation.
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