SEC Delays Decision on Ether ETFs until May 2024; Bitcoin ETF Approval Likely Soon
Summary:
The U.S. Securities and Exchange Commission (SEC) has deferred its decision on various Ether exchange-traded funds (ETFs) to May 2024, including the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. Proceedings are underway to elicit further public feedback on the ETF listings. Bloomberg ETF analysts predict the SEC could make a decision on 13 spot Bitcoin ETFs as early as January 10, with a 90% chance of approval. This decision has encouraged market optimism, with Bitcoin's price increasing over 44% in the past six months.
The United States Securities and Exchange Commission (SEC) has postponed its ruling on various Ether (ETH) exchange-traded funds (ETFs) until May 2024. As disclosed in several regulatory files on December 18, the SEC has decided to defer its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex Ether ETF intends to possess spot Ether as well as futures contracts, while Grayscale's Ethereum Futures ETF is perceived as a cunning strategy that might compel the SEC to allow Grayscale to transform its Ethereum Trust into a spot Ethereum ETF. According to the filings, the SEC is initiating proceedings to solicit more public feedback to determine whether the ETFs should be authorized. The SEC also put off its decision regarding the VanEck spot Ethereum ETF, as well as the spot Ethereum ETF put forth by Cathie Wood's ARK Invest and 21Shares.
According to an update shared by James Seyffart, Bloomberg ETF analyst, these delays were presumed and were due to be announced prior to December 25. He further noted that the definitive date for the SEC's determination on the ETFs will be in late May. He added an update on early delay orders for Hashdex and Grayscale Ethereum ETF filings, which were not required until January 1, 2024.
While the SEC has previously given the green light to Ethereum futures ETFs, it has yet to allow a spot or blended-type product. The market, on the other hand, is chiefly concerned about whether the SEC will endorse 13 spot Bitcoin (BTC) ETFs. According to Seyffart and Eric Balchunas, another Bloomberg ETF analyst, the SEC could potentially make a decision as soon as January 10. Both analysts estimate that a spot Bitcoin ETF has a 90% chance of being approved, fueling market optimism. Bitcoin's price has surged by over 44% in the past six months, stimulated by predictable institutional Bitcoin access. In contrast, Ether's price has registered a moderate increase of 16.8% during the same period, according to TradingView data.
Published At
12/19/2023 5:59:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.