Ethereum ETF Approval Decision Delayed by SEC
The United States Securities and Exchange Commission (SEC) has announced a delay in its verdict on the Hashdex and ARK 21Shares spot Ethereum exchange-traded funds (ETFs). This news has been closely watched by Ethereum enthusiasts, who are eagerly awaiting a decision.
Ethereum ETF Approval Chances Take a Hit
The SEC has extended the decision period for these ETFs until late May. The final decision dates have been set as May 24 and May 30 for ARK 21Shares and Hashdex, respectively. The reason given by the SEC for the delay is to allow sufficient time to consider the proposed rule change and the issues raised in relation to it.
Following this announcement, the price of Ethereum experienced an 8% drop, which highlights the market’s sensitivity to regulatory decisions. Currently, Ethereum is trading at around $3,100, reflecting the uncertainty surrounding the approval of its ETFs.
This delay also affects other proposals for Ethereum ETFs, including those from industry giants such as BlackRock, Grayscale, and Fidelity. Analysts have expressed skepticism about the likelihood of approval, with sentiment shifting in recent times.
Lack of Engagement Raises Concerns
ETF analyst James Seyffart has pointed out a concerning lack of engagement between the SEC and Ethereum ETF issuers. Unlike Bitcoin ETFs, where proactive discussions have taken place, there has been limited dialogue regarding Ethereum ETFs. This lack of engagement has led to a more pessimistic outlook for their approval.
Seyffart recently posted on Twitter expressing his changed attitude towards Ethereum ETFs. He now believes that they will ultimately be denied in this round of decision-making on May 23.
Diminished Approval Odds
Market predictions have shown a significant decline in confidence regarding the approval of an Ethereum ETF. According to Polymarket, the likelihood of approval in May has plummeted to 24%, a sharp contrast to the 75% odds following the SEC’s approval of spot Bitcoin ETFs in January.
This decrease in approval odds further adds to the uncertainty surrounding the future of Ethereum ETFs.
Coinbase Supports Ethereum ETFs
Coinbase, a leading cryptocurrency exchange, has emerged as a vocal supporter of Ethereum ETFs. In a letter published last month by Paul Grewal, Coinbase’s chief legal officer, the rationale for approving an Ethereum ETF was outlined.
Grewal emphasized that Ethereum should be classified as a commodity, a view supported by the Commodity Futures Trading Commission (CFTC) and various SEC and court decisions. This argument aims to demonstrate Ethereum’s market stability and viability as an ETF.
Hot Take: Uncertainty Surrounds Ethereum ETF Approval
The SEC’s decision to delay its verdict on the Hashdex and ARK 21Shares spot Ethereum ETFs has added more uncertainty to the approval process. With the final decision dates set for late May, the crypto community is eagerly awaiting the outcome.
The delay has raised concerns about the likelihood of approval and has led to a decline in confidence among market participants. Analysts have become more pessimistic about the prospects of an Ethereum ETF being approved this round.
Coinbase’s support for Ethereum ETFs provides some optimism, but the overall sentiment remains uncertain. The market will continue to closely monitor developments and regulatory decisions regarding Ethereum ETFs.
Bernard Nicolai emerges as a beacon of wisdom, seamlessly harmonizing the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the labyrinth of digital assets, Bernard’s insights echo like a resonant chord, touching the minds of seekers with diverse curiosities. His talent for deciphering the most intricate strands of crypto intricacies seamlessly aligns with his editorial finesse, transforming complexity into a captivating narrative of comprehension.