SEC Remains Tight-Lipped on Ether ETF Approval Timeline Amid Industry Speculation
Summary:
US SEC Chair, Gary Gensler, remained non-committal about Ether ETFs' possible approval timeline during a recent CNBC interview. The SEC has delayed decisions on several Ether ETF applications from various firms, including Invesco, Grayscale, Fidelity, and BlackRock. Bloomberg ETF analyst, James Seyffart, expects a blanket decision on remaining Ether ETF applications by May 23, according to deadlines set by the SEC. However, the odds of approval in 2024 have recently been reduced from 70% to 60% by another Bloomberg ETF analyst, Eric Balchunes.
In a Squawk Box CNBC interview on February 14th, the Chairman of the U.S. Securities and Exchange Commission, Gary Gensler, carefully skirted questions about the progress of Ether exchange-traded funds (ETFs), echoing the process with Bitcoin ETFs but not hinting at the current status or impending timeline. On February 6th, the securities watchdog held back on giving the green light to an ETF from Invesco Galaxy, a decision that had also been delayed back in December.
The SEC has similarly stalled decisions on other Ethereum ETF applications from companies like Grayscale, Fidelity, and BlackRock, the highest-ranking asset management firm worldwide. VanEck and Hashdex are also seeking approval for ETFs.
Wall Street giant Franklin Templeton, with $1.5 trillion in assets, is among the most recent firms to ready a spot Ether ETF, filing an S1 on February 12th. The company intends to stake segments of the ETF's Ether to yield more passive income, in a comparable move to what ARK 21Shares proposed in their updated filing.
The SEC has deadlines to meet for ruling on these applications - VanEck's by May 23, ARK 21Shares' by May 24, Hashdex's by May 30, Grayscale's by June 18, and Invesco's by July 5. Decisions on applications from Fidelity and BlackRock are due by August 3 and August 7, respectively.
James Seyffart, a Bloomberg ETF analyst, anticipates a collective decision on the remaining Ether ETF applications by May 23, mirroring the way the SEC granted approval to all spot Bitcoin ETFs on January 10. However, another Bloomberg ETF analyst, Eric Balchunes, recently decreased the estimated odds of a spot Ether ETF getting approval in 2024, dropping from 70% to 60%.
Gensler has the ability to defer decisions, as noted in a post by Balchunes on January 31, saying, “If Gensler really wants to – he can kick the can down the road. There was no more can-kicking for Bitcoin [ETF applications].”
On the Bitcoin ETF front, BlackRock’s iShares Bitcoin Trust (IBIT) gained leadership within the U.S. as it acquired over 100,000 BTC under its management by February 13.
Published At
2/14/2024 6:45:38 PM
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