US SEC Delays Decision on Spot Ether ETF Applications, Sets New Deadlines
Summary:
The U.S. Securities and Exchange Commission has postponed its decision on approving spot Ether exchange-traded fund applications from ARK 21Shares and VanEck. The commission cited the need for additional time to consider the proposed rule change and associated issues thoroughly. Similar postponements were also seen for spot Bitcoin ETF applications from ARK 21Shares and GlobalX. Meanwhile, deadlines for applications from BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, and Fidelity are due in October.
The U.S. Securities and Exchange Commission (SEC) has postponed its verdict on approving spot Ether (ETH) exchange-traded fund applications, tendered by ARK 21Shares and VanEck. Notifications filed on September 27 clarified that the SEC has opted to extend the period for either approving or rejecting the proposed rule alteration that would permit spot ETH ETFs listings from VanEck and ARK 21Shares on the Cboe BZX Exchange. The regulatory body hasn't received any public feedback yet regarding the proposals and has deferred the deadlines for another possible delay or decision to December 25 and December 26, correspondingly.
The SEC voiced its need for additional time to thoroughly examine the proposed rule change and the linked issues. The delay announcement coincided with Nasdaq Stock Market's submission of a proposed rule change to the SEC to list its mixed ETH ETF, which would be a blend of spot Ether assets and future contracts. Additionally, several other proposed rule modifications were lodged on September 27, which includes ones from New York Stock Exchange Arca for the Grayscale Ethereum Futures Trust and Hashdex Bitcoin Futures ETF, and the Cboe BZX Exchange for the Franklin Bitcoin ETF.
The SEC also disclosed on September 26 that more time was needed before deciding on spot Bitcoin (BTC) ETF applications from ARK 21Shares and GlobalX. The regulator published this decision well before upcoming verdict deadlines for both funds, moving the final decision on ARK 21Shares’ ETF to January.
Related: US lawmakers are pressuring the SEC chair to immediately approve spot Bitcoin ETFs.
Cathie Wood, the CEO and founder of ARK Investment Management, speculated back in August that the SEC might simultaneously approve several spot ETFs to prevent any single company from gaining a competitive edge. Her comments came just before Grayscale Investments won a court case against the SEC for its spot Bitcoin ETF application which will likely now be reassessed.
Historically, the SEC has never approved a spot crypto ETF in the US. However, the regulator has permitted the listing of crypto-linked futures ETFs and even a leveraged Bitcoin futures ETF. The upcoming decision deadlines for spot crypto ETF applications from firms such as BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, and Fidelity are slated for October.
Published At
9/27/2023 9:45:00 PM
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