SEC Delays Ethereum ETF Decision Until Year-End
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on the approval of two spot Ethereum exchange-traded funds (ETFs). This comes shortly after the SEC postponed its verdict on a spot Bitcoin ETF. The SEC will now extend its decision on both the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF until at least the end of 2023. The filing for the ARK 21Shares ETF states that the SEC will either approve or disapprove the proposed rule change by December 26, while the VanEck ETF decision has been rescheduled to December 25.
No Comments Received on Ethereum ETF Proposal
The SEC claims that it has received no comments on the proposed rule change that would allow for Ethereum ETFs on the Nasdaq stock exchange. Both companies, ARK Invest and 21Shares, submitted their applications for spot Ethereum ETFs on September 6. If approved, these would be the first Ether-based ETFs offering direct exposure to ETH in the US. At present, Ethereum’s price stands at $1,599.
SEC Postpones Decision on ARK 21Shares Bitcoin ETF
In addition to delaying the Ethereum ETF decisions, the SEC has also postponed its decision on the ARK 21Shares Bitcoin ETF. Originally expected in mid-October, this decision is now scheduled for January 10, 2024. Meanwhile, Grayscale, whose Bitcoin ETF application was initially denied but later overturned by a US court of appeals, is seeking a prompt meeting with the SEC to expedite the process.
Possible Approval for Ethereum Futures ETFs
Insider sources have revealed that several firms may secure approval for an Ethereum Futures ETF as early as October. Among the firms in contention is VanEck, which has applied for the VanEck Strategy Ethereum ETF. This development could provide investors with alternative options for gaining exposure to Ethereum in the US market.
Hot Take: SEC Delays Decision on Ethereum ETFs
The SEC’s decision to delay its verdict on spot Ethereum ETFs until the end of the year reflects ongoing regulatory uncertainty surrounding cryptocurrency investment products. While this may be disappointing for those eagerly awaiting an Ether-based ETF, it is crucial to remember that regulatory bodies prioritize investor protection and market stability. The delay provides more time for the SEC to thoroughly evaluate the proposals and address any concerns they may have. In the meantime, investors can explore other avenues for gaining exposure to Ethereum, such as through futures contracts or existing crypto investment vehicles like Grayscale’s Ethereum Trust.
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