The SEC’s Decision to Postpone Spot Ethereum ETF Applications
The US Securities and Exchange Commission (SEC) has made a recent announcement that has dampened the spirits of the crypto community. The SEC has decided to postpone two Spot Ethereum ETF applications, causing disappointment among investors.
The Announcement Details
In separate releases, the SEC revealed that it will be delaying its decision on the proposed rule change by the Cboe BZX Exchange to list and trade the shares of the VanEck Ethereum ETF and ARK 21Shares Ethereum ETF.
This news follows the Commission’s previous decision to extend the deadline for ARK Invest’s Spot Bitcoin ETF application. The decision on this application is now set for January 10, 2024. The SEC also delayed its decision on the ARK 21Shares Bitcoin ETF until November 11.
Implications of the Delay
These ETH ETF applications were postponed just weeks before their respective deadlines in November. The SEC now has an additional 45 days to make a decision on these applications, with new deadlines set for December. The VanEck Ethereum ETF will receive a decision on December 25, while the ARK 21Shares Ethereum ETF will hear back on December 26.
The outcome of Grayscale’s case against the SEC could greatly influence the decision on these Spot ETH ETFs. If the pending Ethereum futures ETF launches as planned in October, it may strengthen arguments for approving the Spot Ethereum ETFs from VanEck and ARK Invest based on market correlation.
Possible Timeline
If the SEC continues to delay these applications, a final decision may not be reached until around May 23, 2024, according to Bloomberg analyst James Seyffart.
Hot Take: SEC’s Decision Delays Hope for Crypto Community
The SEC’s recent announcement to postpone two Spot Ethereum ETF applications has disappointed the crypto community. Investors were eagerly awaiting a decision, but now they must wait even longer. The delay raises questions about the future of these ETFs and the impact of Grayscale’s case against the SEC. It remains to be seen how these developments will affect the market and investor sentiment. Until then, crypto enthusiasts will have to exercise patience as they await further updates from the SEC.
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