SEC Delays Decision on Ethereum ETFs
The Securities and Exchange Commission (SEC) has postponed its decision on the approval of two Ethereum-focused exchange-traded funds (ETFs). In a statement, the SEC announced the initiation of proceedings for ETF approval. However, this does not mean that the Commission has made any final decisions regarding the matter.
The SEC’s decision follows a previous delay on the Invesco Galaxy spot Ethereum ETF application, which was moved to next year. The SEC has also extended the deadlines for other ETF applications, including those from Hashdex Nasdaq Ethereum, Hashdex Bitcoin futures, Franklin Templeton, and Global X spot Bitcoin.
Reasons for Delay
The SEC’s early announcement regarding the delay could be an attempt to clear the application queue before the high submission period in December. The SEC’s digital system for regulatory filings, called EDGAR, experiences a peak in submissions during this time. The SEC is also seeking public comments to assess whether Ethereum ETFs should be treated differently from spot Bitcoin ETFs.
Evaluating Ethereum vs. Bitcoin ETFs
The comparison between Ethereum and Bitcoin ETFs may shed light on the SEC’s regulatory approach to different crypto ETFs. The SEC has opened a comment period until December 22, with a deadline for rebuttal comments set for January 5. As we approach January 2024, US regulators are expected to make a final decision on approving a physically-backed Bitcoin ETF.
Hot Take: Will Crypto ETFs Finally Get Approved?
The delay in approving Ethereum-focused ETFs by the SEC raises questions about when crypto ETFs will finally receive approval. While there have been multiple delays and rejections, recent statements from SEC Chairman Gary Gensler indicate that the agency is reviewing the filings. As the crypto sector eagerly awaits a conclusive verdict on ETFs, market participants remain hopeful that regulatory approval will be granted in the near future.
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