SEC Pushes Back Decision on VanEck Ethereum ETF Application Until May
Summary:
The US Securities and Exchange Commission (SEC) has delayed its decision on VanEck's application for an Ethereum ETF, extending the deadline to May 23. The regulator is allotting more time to consider the application, amidst rumors of an investigation into firms with alleged links to the Ethereum Foundation. The delay in the application process also allows for public comment. This move follows the SEC's approval of Bitcoin ETFs in January, although two US Senators have called for Ethereum ETF applications to be rejected due to potential risks for retail investors.
The US Securities and Exchange Commission (SEC) has delayed a potential decision on VanEck's application to launch a spot Ethereum (ETH) exchange-traded fund (ETF). According to a notice released on March 20, the SEC increased the time frame for deciding whether the Cboe BZX Exchange could list and sell shares of the VanEck Ethereum ETF. The final verdict concerning the investment tool will not be given until May 23. The SEC expanded the timeframe, allowing them sufficient time to properly evaluate the proposed rule change. The SEC had previously postponed decisions on spot Ether ETFs from Hashdex and ARK 21Shares. James Seyffart, an ETF analyst at Bloomberg, conjectured that the current Ethereum ETF applications set to expire in May 2024 would likely be refused. There have been suspicions that the SEC could be probing companies over alleged alliances with the Ethereum Foundation as part of their attempt to categorize Ethereum as a security, causing questions over what such an investigation could imply for Ethereum ETF approvals. The SEC began approving Ether futures-linked investment tools in October 2023, suggesting that the cryptocurrency could be recognized as a commodity. The SEC's delay of VanEck's application now permits the public to comment on the proposal. The SEC allowed US exchanges to list and trade shares of spot Bitcoin (BTC) ETFs for the first time on January 10, with most commissioners approving the changes in regulations. However, two US Senators, Jack Reed and Laphonza Butler, have urged SEC Chairman Gary Gensler to turn down Ethereum ETF applications, arguing that doing so would bring about "significant risks" for common investors.
Published At
3/20/2024 10:46:56 PM
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