2024-03-20
The Securities Exchange Commission made a decision In a notice filed on Tuesday, the SEC said it would be extending its timeline for approving the Hashdex Nasdaq Ethereum exchange-traded fund until May 30, 2024, indicates a cautious approach towards evaluating the proposal, possibly reflecting the complexities involved in ETFs holding spot ether and futures contracts.
The decision to designate a longer period to consider the proposed rule change and related issues demonstrates their commitment to thorough evaluation and ensuring they have adequate time to assess the potential implications of approving or disapproving the Hashdex Nasdaq Ethereum exchange-traded fund.
The filing by the Nasdaq stock exchange to list the Hashdex Nasdaq Ethereum ETF in September, managed by Toroso Investments, underscores the growing interest in cryptocurrency-based financial products.
The SEC's repeated delays in making a decision and request for public comments in December indicate a thorough review process.
On Tuesday the SEC delay decision on the ARK 21Shares Ethereum ETF and request public comments this act reflects their thorough review process and consideration of stakeholder input. This extended timeline until May 24, 2024, indicates the complexity involved in evaluating ETFs tracking cryptocurrencies like ether and their potential impact on the market.
The diminishing optimism surrounding the approval of a spot Ethereum ETF by the SEC, despite applications from big-name firms like Fidelity and BlackRock, highlights the uncertainty and challenges facing such products in the current regulatory environment.
Bloomberg ETF analyst Eric Balchunas' revised estimate, lowering the chances of approval from about 70% to 30% by May, underscores the complexity and evolving nature of regulatory considerations in the cryptocurrency space.
While fellow Bloomberg ETF analyst James Seyffart said the delays on Tuesday were expected.
These were always going to be delay orders. The only deadline that matters is May 23rd," Seyffart posted on Twitter ( X)
Seyffart also said he expected spot Ethereum ETFs to be denied.
Seyffart's perspective on the delays and expectations regarding spot Ethereum ETFs provides insight into the evolving sentiment within the industry.
His anticipation of delays aligns with the complexity of regulatory processes.
Additionally, his cautious outlook on spot Ethereum ETFs, expecting them to be denied by May 23rd, reflects the lack of engagement from the SEC on Ethereum specifics, contrasting with the approach taken with Bitcoin ETFs last fall.
James Seyffart Twitter (X) Post
The SEC has indeed approved ether futures-based ETFs previously, but they have not yet approved a spot ether ETF or a mixed ETF combining spot ether and futures contracts.
In October, the approval of nine futures-based products marked a significant milestone in the cryptocurrency ETF landscape.
