- The regulator will delay its decision on the Grayscale and the Hashdex ETFs
- SEC is instituting proceedings that involve collecting further public input
The US Securities and Exchange Commission announced it would postpone its decision on several Ether exchange-traded funds (ETFs) to May 2024 in a number of Dec. 18 regulatory filings, Cointelegraph reported. More specifically, the regulator has decided to delay its decision on the Grayscale Ethereum Futures ETF and the Hashdex Nasdaq Ethereum ETF.
Those opposed to the Grayscale filing and to the idea of an Ether ETF in general claim the Grayscale ETF is a Trojan horse that would compel the regulator to let the conglomerate convert its Ethereum Trust to a spot ETF.
The Hashdex Ether ETF, which has seen broader support, plans to hold futures as well as spot Ether contracts.
Further ‘public input’ needed
In the SEC’s filings, the regulator claims it is instituting proceedings that involve collecting further public input on whether they should greenlight the ETFs.
In the same vein, the SEC pushed back its decisions on 21 Shares, ARK Invest, and the VanEck spot Ethereum ETFs.
Expected delays
Bloomberg ETF expert James Seyffart commented the delays were “expected,” and the news had been anticipated before Christmas. According to him, the regulator cannot postpone the decisions beyond May.
While it has already approved Ethereum futures ETFs, it has yet to approve a mixed or a spot product.
Spot Bitcoin approval pending
Most stakeholders are focused on whether the regulator will approve the more than a dozen spot Bitcoin ETF applications. According to Seyffart and Eric Balchunas, another Bloomberg ETF analyst, the SEC could decide on this by Jan. 10.
Both experts predicted a 90% chance of spot Bitcoin ETF approval. The optimism associated with institutional access to the flagship crypto has riveted markets. Bitcoin’s price has gained almost 50% in the last six months.
Ether has also been gaining, albeit not as significantly. The second-biggest crypto by market cap added just under 17% to its value in the last six months.
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