SEC Postpones Decision on Multiple Ethereum ETFs to May

The approval decision for several Ethereum exchange-traded funds (ETFs) has been postponed by the United States Securities and Exchange Commission (SEC) until May 2024, according to recent regulatory filings on December 18.

Among the delayed ETFs are the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. The Hashdex Ether ETF aims to encompass both spot Ether and futures contracts, while the Grayscale Ethereum Futures ETF is strategically positioned as a potential catalyst for the SEC to permit Grayscale’s conversion of its Ethereum Trust into a spot Ethereum ETF.

In light of these developments, the SEC has initiated proceedings to solicit additional public input on whether these ETFs should be listed, indicating a thorough examination of the matter. Furthermore, the agency has also deferred its decision on the VanEck spot Ethereum ETF and the spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares.

Update: There it is. Delay order for @ARKInvest and @21Shares on their spot #Ethereum ETF filing. Expected and was due by December 26th. Final date for these are in late May. https://t.co/Zs6Zsd4uKj pic.twitter.com/9u0nNiPD9O

— James Seyffart (@JSeyff) December 18, 2023

Bloomberg ETF analyst James Seyffart foresaw these delays as anticipated and predicted their occurrence before December 25. The SEC’s decision to extend the timeline reflects a deliberate approach, highlighting the significance of public input in shaping the regulatory landscape for Ethereum ETFs.

Seyffart emphasized that the conclusive decision on the ETFs by the regulator is slated for the latter part of May. Despite the SEC’s previous greenlight for Ethereum futures ETFs, the agency has yet to grant approval for a spot or a hybrid product.

UPDATE: SEC Going early with delay orders for @hashdex & @Grayscale #Ethereum ETF filings. Neither were due until Jan 1, 2024.

Maybe just clearing the queue before the holidays? pic.twitter.com/LdZQxGh43L

— James Seyffart (@JSeyff) December 18, 2023

Simultaneously, much of the market attention is directed toward the SEC’s potential approval of 13 spot Bitcoin (BTC) ETFs before the given timeframe. According to Seyffart and fellow Bloomberg ETF analyst Eric Balchunas, a decision could materialize as early as January 10.

Both analysts have assessed the likelihood of a spot Bitcoin ETF approval at 90%, contributing to the market’s optimism regarding institutional entry into Bitcoin. Over the past six months, Bitcoin has exhibited a robust growth of more than 44%. Ether, while showing slightly more modest gains, has experienced a commendable 16.8% increase within the same timeframe, as per TradingView data.