SEC Extends Review Period for Ethereum ETFs to May 2024
The United States Securities and Exchange Commission (SEC) has once again deferred its decision on a range of Ethereum exchange-traded funds (ETFs), with the final judgment now slated for May 2024. This move reflects the agency’s cautious approach to cryptocurrency-based financial products.
Hashdex and Grayscale ETFs Under Scrutiny
In recent regulatory filings dated December 18, the SEC announced the postponement of decisions regarding the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex ETF is designed to include both spot Ether and futures contracts, while Grayscale’s offering focuses solely on Ethereum futures, a strategy seen as a potential catalyst for the conversion of its Ethereum Trust into a spot Ethereum ETF.
Gathering More Public Input
The SEC’s filings indicate that the decision delay is part of a process to gather more public input on whether these ETFs should be listed. This step highlights the regulatory body’s commitment to thorough review and consideration of public opinion in its decision-making process.
VanEck and ARK Invest ETFs Also Affected
Further impacted by the SEC’s decision are the VanEck spot Ethereum ETF and a similar product proposed by Cathie Wood’s ARK Invest and 21Shares. Bloomberg ETF analyst James Seyffart noted that these delays were anticipated and align with the SEC’s careful approach to cryptocurrency ETFs.
Market Focus on Bitcoin ETFs
While the Ethereum ETFs await the SEC’s decision, the market’s attention is largely on the potential approval of 13 spot Bitcoin ETFs. According to Seyffart and fellow Bloomberg analyst Eric Balchunas, the SEC could reach a decision on these as early as January 10, 2024, with a high probability of approval. This anticipation has positively influenced Bitcoin’s market performance, with a significant price increase over the past six months.
Ether’s Market Performance
Despite Ethereum not experiencing the same level of growth as Bitcoin, Ether’s price has seen a respectable rise of 16.8% in the same period, as per TradingView data. This growth reflects the ongoing interest and confidence in Ethereum as a key player in the cryptocurrency market.
In conclusion, the SEC’s decision to delay the approval of Ethereum ETFs to May 2024 is a significant development for the cryptocurrency industry, emphasizing the regulatory body’s cautious yet methodical approach to integrating cryptocurrencies into mainstream financial products. The outcome of this decision could have far-reaching implications for the future of Ethereum and the broader cryptocurrency market.
