The United States Securities and Exchange Commission (SEC) has recently announced a delay in its decision on whether to approve applications for several Ethereum exchange-traded funds (ETFs) from asset management firms. This decision affects applications from Ark Invest/21Shares, VanEck, and Hashdex, all vying to launch Ethereum ETFs. While VanEck and Ark Invest/21Shares aim to track the spot price of ether (ETH), Hashdex plans to introduce a mixed fund combining spot and futures price movements.
The SEC has stated that it is initiating proceedings to determine whether to approve or disapprove the proposed rule change that would enable the listing of these ETFs. The delay orders issued by the SEC push the final decision on these applications to May 2024. This extended timeline allows interested individuals to provide written submissions of their views, data, and arguments regarding these proposals and any other concerns they may have.
Financial analysts, including Bloomberg’s James Seyffart, suggest that the approval or disapproval of these proposals has been further postponed due to the SEC’s latest move. The original deadline for the VanEck, Ark Invest/21Shares, and Hashdex applications was set for December 25, 26, and January 1, respectively. However, the SEC’s delay orders have pushed these dates further into the future.
In addition to the applications from Ark Invest/21Shares, VanEck, and Hashdex, other asset management firms have also submitted applications for Ethereum ETFs. The SEC has recently extended the deadlines for applications from Invesco/Galaxy Digital and Grayscale Investments. Invesco/Galaxy Digital plans to launch a spot Ethereum ETF, while Grayscale Investments intends to convert its Grayscale Ethereum Trust (ETHE) into a spot product. The initial decision for the Invesco Galaxy Ethereum spot ETF has been rescheduled from December 23 to February 4.
Bitcoin ETFs Anticipation
While Ethereum ETFs await approval, there is anticipation within the crypto community regarding the potential approval of approximately 13 applications for spot Bitcoin ETFs by January. The SEC’s decision on Bitcoin ETFs remains a topic of interest due to its potential impact on the overall cryptocurrency market.
The SEC’s delay in approving or disapproving Ethereum ETF applications from asset management firms such as Ark Invest/21Shares, VanEck, and Hashdex has created uncertainty within the crypto community. The extended timeline until May 2024 allows for public comments and evaluation of the proposed rule changes. It remains to be seen how this decision will impact the cryptocurrency market and whether the anticipated spot Bitcoin ETF approvals will materialize.