The United States Securities and Exchange Commission (SEC) has postponed its decision on proposed spot Ether (ETH) exchange-traded funds (ETFs) from Hashdex and ARK 21Shares. The SEC’s decision to delay came just before its “third deadline,” with both ETF applications facing a final decision in late May.
Analysts have expressed growing concerns about the approval prospects for the eight currently proposed Ether ETFs. Bloomberg ETF analyst James Seyffart noted a lack of engagement between the SEC and issuers, leading to a shift in his cautiously optimistic attitude towards ETH ETFs.
Last week, Bloomberg ETF analyst Eric Balchunas lowered the approval odds for Ether ETFs from 50% to 35%, citing the SEC’s silence during the process. Public sentiment has also declined, with Polymarket odds for Ether ETF approval by the end of May dropping to 32% from January’s 77%.
Grayscale, the asset manager, is considering adding staking to its spot Ether ETF application. In a statement to investors of its Grayscale Ethereum Trust, the firm outlined proposals, including the ability to stake Ether held by the trust to mitigate inflationary pressures resulting from Ethereum‘s proof-of-stake protocol.
The proposals are subject to a vote, requiring the consent of over 50% of shares. If approved, Grayscale would join other issuers like ARK 21Shares, Franklin Templeton, and Fidelity in incorporating Ether staking into their spot ETF applications.
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