The SEC Extends Decision on Spot Ethereum ETF
The US Securities and Exchange Commission (SEC) has granted a 45-day extension to decide on the approval or disapproval of a spot Ethereum exchange-traded fund (ETF) application submitted by Invesco and Galaxy Digital. The original decision was scheduled for December 23, 2023, but the new deadline is now February 4, 2024. The SEC stated that it needed more time to consider the proposed rule change and the issues raised. This delay follows the SEC’s recent extension of its decision on Grayscale Investments’ spot Ethereum ETF. There are currently seven spot ETH ETF filings awaiting a decision from the SEC.
Spot Crypto ETFs Still Await Approval in the US
In addition to the delays in spot Ethereum ETFs, the SEC has also extended the decision period for spot Bitcoin ETFs. However, there have been reports of advanced conversations between the Commission and applicants, which has sparked hope for potential approvals. Major players like BlackRock, Franklin Templeton, and Fidelity are vying to launch a spot Bitcoin ETF. Hashdex predicts that US investors could have access to a spot BTC ETF by Q2 2024, followed by a spot Ether ETF.
Hot Take: Further Delays Impact Crypto Market
The extensions granted by the SEC for spot Ethereum and Bitcoin ETFs have had an impact on the crypto market. Investors eagerly await these products as they would provide an easy way to gain exposure to these digital assets through traditional investment vehicles. However, with each delay, uncertainty grows and market participants are left wondering when these ETFs will finally be approved. The race among asset managers and financial institutions to launch these products highlights the growing demand for regulated crypto investment options. The SEC’s decisions will not only shape the future of crypto ETFs but also impact the overall adoption and acceptance of cryptocurrencies in the mainstream financial industry.
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