The United States Securities and Exchange Commission (SEC) has postponed its decision on approving Ethereum exchange-traded funds (ETFs) from various asset management companies until May 2024. This delay affects applications from Ark Invest/21Shares, VanEck, and Hashdex, initially filed in September. These ETFs, with varying compositions tracking the spot price of ether (ETH) and combining spot and futures price movements, are under review. The SEC is now soliciting public feedback for 35 days following the Federal Register publication.
The SEC emphasizes that this process doesn’t imply any preliminary judgment on the applications. It encourages stakeholders to submit their views and arguments regarding the applications and any other concerns. Analyst James Seyffart from Bloomberg notes that this extension shifts the final decision deadline to May 2024, despite initial expectations for decisions on VanEck, Ark Invest/21Shares, and Hashdex by late December and early January.
In addition, Ethereum ETF applications from Invesco/Galaxy Digital and Grayscale Investments have also seen extended deadlines. Invesco/Galaxy Digital seeks to introduce a new spot Ethereum ETF, while Grayscale aims to convert its Ethereum Trust (ETHE) into a spot product. The SEC has deferred its decision on the Invesco Galaxy Ethereum spot ETF from December 23 to February 4. Although Grayscale’s public comment period has closed, the SEC is taking extra time to consider the proposed rule change.
The crypto community is eagerly awaiting the SEC’s verdict on approximately 13 applications for spot Bitcoin ETFs, expected by January.