The SEC Initiates Proceedings for Two Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) has announced that it is initiating proceedings for the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust. The agency is seeking public input on whether these exchange-traded funds should be allowed to list. While the SEC has previously approved ether futures-based ETFs, it has not yet given the green light to a spot ether or mixed fund. The crypto industry is eagerly awaiting the SEC’s decision on spot bitcoin ETFs as well. Firms have been meeting with SEC staff to discuss details over the past month.
Previous Delays
Last month, the SEC delayed its decision on the Hashdex Nasdaq Ethereum ETF and Grayscale’s proposed Ethereum futures ETF. The Hashdex ETF plans to hold both spot ether and futures contracts and is managed by Toroso Investments. Grayscale’s ETF, on the other hand, raised concerns about ether’s proof of stake consensus method and potential fraud and manipulation. Comments on both proposals are due in approximately 21 days.
About Author
Sarah is a reporter at The Block who covers policy, regulation, and legal developments in the crypto industry. She has previous experience reporting on securities regulation and has written for publications such as The Bond Buyer and American Banker. Sarah is based in Washington D.C. and can be followed on Twitter @ForTheWynn.
Hot Take: SEC’s Review of Ethereum ETFs Signals Growing Crypto Market Interest
The initiation of proceedings by the SEC for two Ethereum ETFs indicates a growing interest in the cryptocurrency market. While the SEC has previously approved futures-based ETFs for Ethereum, it has not yet approved spot or mixed funds. This decision will have significant implications for investors and may pave the way for future approvals of Bitcoin ETFs as well. The crypto industry eagerly awaits the SEC’s decision, and firms have been actively engaging with the agency to discuss the details. Overall, this development reflects the increasing mainstream acceptance and recognition of cryptocurrencies as legitimate investment assets.
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