The United States Securities and Exchange Commission (SEC) has postponed its decision on several Ethereum (ETH) exchange-traded funds (ETFs) until May 2024.
In a series of regulatory filings on December 18, the SEC extended the review period for the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex Ether ETF is designed to include both direct Ether holdings and futures contracts. Grayscale’s Ethereum Futures ETF, on the other hand, is perceived as a strategic move to compel the SEC into allowing the conversion of Grayscale’s Ethereum Trust into a spot Ethereum ETF.
The SEC’s filings indicate that it is initiating proceedings to collect more public feedback on whether these ETFs should be approved for listing.
Additionally, the SEC delayed its decision on the VanEck spot Ethereum ETF and the spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares. Bloomberg ETF analyst James Seyffart anticipated these delays, expecting them to be announced before December 25. He noted that the final deadline for the SEC’s decision on these ETFs is set for late May.
Despite previously approving Ethereum futures ETFs, the SEC has not yet greenlit any spot or mixed-type Ethereum ETFs. Meanwhile, the market’s attention is largely on the SEC’s potential approval of 13 spot Bitcoin (BTC) ETFs. Seyffart, along with fellow Bloomberg ETF analyst Eric Balchunas, suggested that the SEC might make a decision as soon as January 10.
Both analysts estimate a 90% chance of a spot Bitcoin ETF being approved. This prospect has buoyed market sentiment, reflected in the significant 44% increase in Bitcoin’s price over the past six months.
Ether has also seen notable growth, albeit less dramatic than Bitcoin, with a 16.8% increase in the same period, according to TradingView data.
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