Ethereum Spot ETFs: SEC Delays Approval Decision
As a crypto enthusiast, you may be interested to know that the Securities and Exchange Commission of the USA (SEC) is facing delays in making a decision on whether to approve Ethereum spot ETFs. The recent extension also affects Ark 21Shares, with the deadline set for May 23rd.
SEC Extends Verdict on Ethereum Ark 21Shares ETF
According to reports, the SEC is prolonging its assessment of applications for the issuance of ETFs on Ethereum spot. This delay also impacts Ark 21Shares, with the SEC soliciting public comments on this matter.
“The Commission believes it is appropriate to designate a longer period within which to issue an order of approval or disapproval of the proposed regulatory amendment, in order to have sufficient time to consider the proposed regulatory amendment and the issues raised therein.”
Additionally, the SEC is postponing its decision on Hashdex’s application for an Ethereum ETF.
Verdict Extensions on Ark 21Shares and Other Applications
The SEC is taking its time to evaluate applications for Ethereum spot ETFs not only from Ark 21Shares and Hashdex but also from other companies. Analyst James Seyffart from Bloomberg ETF had anticipated these delays.
- Seyffart listed VanEck, Ark 21Shares, Hashdex, and Grayscale as applicants likely to face delays.
- He expressed a change in sentiment, believing that these requests will be rejected by the SEC on May 23.
“My cautiously optimistic attitude towards ETH ETFs has changed compared to the last few months. Now we believe that ultimately these will be rejected on May 23 for this round. The SEC has not engaged with issuers on Ethereum specifics. Exactly the opposite of the #Bitcoin ETFs this fall.”
The Grayscale Application Update
Grayscale recently filed an amended form to list ETHE on NYSE Arca. Chief Legal Officer Craig Salm emphasized that investors deserve access to Ethereum through an Exchange-Traded Fund.
- Despite this effort, the SEC continues to delay its decision on Grayscale’s application.
- The application process began last October and is subject to a 240-day review by the SEC.
Closing Thoughts: What Lies Ahead for Ethereum Spot ETFs?
As you navigate the world of cryptocurrencies, it’s essential to stay informed about regulatory developments impacting assets like Ethereum. The delays in approving spot ETFs reflect the complexities and uncertainties surrounding these investment products. Keep an eye out for further updates as regulatory bodies like the SEC navigate these waters.
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