SEC Delays Decision on Ether ETFs Until May 2024, Spot Bitcoin ETFs Await Approval
Summary:
The United States Securities and Exchange Commission (SEC) has decided to postpone its decision on multiple proposed Ether (ETH) exchange-traded funds (ETFs) until May 2024. The ETFs include the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. Despite approval of Ethereum futures ETFs in the past, the SEC has yet to approve a spot or mixed-type product. The verdicts on 13 spot Bitcoin (BTC) ETFs are anticipated by January 10, contributing to Bitcoin's 44% price boost over the last six months.
In a series of regulatory documents registered on December 18, the United States Securities and Exchange Commission (SEC) has postponed the decision on several proposed Ether (ETH) exchange-traded funds (ETFs) until May 2024. These include decisions on the Hashdex Nasdaq Ethereum ETF and Grayscale Ethereum Futures ETF.
The objective of Hashdex Ether ETF is to hold both spot Ether and futures contracts, while the Grayscale Ethereum Futures ETF is viewed as a strategic move that would compel the SEC to sanction Grayscale's conversion of its Ethereum Trust into a spot Ethereum ETF.
The SEC, in its filings, mentioned that it is initiating procedures to collect more input from the public on if these ETFs should be approved. It also delayed its decision-making on the VanEck Spot Ethereum ETF, along with the Spot Ethereum ETF lodged by ARK Invest and 21Shares, spearheaded by Cathie Wood.
Bloomberg ETF analyst James Seyffart expressed that these deferments were expected and were meant to happen before December 25th. He further added that the final judgment on these ETFs by the regulator will be made towards the end of May.
Despite previous approvals of Ethereum futures ETFs, SEC has not acknowledged a spot or mixed-type product yet. Most investors are currently keeping an eye on whether the SEC will give a green light to 13 spot Bitcoin (BTC) ETFs.
Bloomberg ETF analysts James Seyffart and Eric Balchunas, predict that the decision could come as early as January 10 and estimate that there's a 90% chance of a spot BTC ETF getting approved. This positive anticipation has considerably boosted the market, resulting in a 44% hike in Bitcoin's value over the last six months. Similarly, Ether’s price has experienced a 16.8% increase within the same period.
Published At
12/19/2023 5:59:03 AM
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