The Securities and Exchange Commission (SEC) in the United States has recently announced that it will delay its decision on a proposed Ethereum exchange-traded fund (ETF) from VanEck. The SEC extended the time frame for approving or disapproving the ETF’s listing on the Cboe BZX Exchange. The final decision on the ETF will now be made on May 23, as the SEC requires more time to thoroughly review the proposed rule change.
This postponement follows similar extensions for spot Ether ETFs from other entities like Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart speculates that these Ether ETF applications, with deadlines in May 2024, may ultimately be denied.
Meanwhile, reports have emerged suggesting that the SEC is investigating various firms for potential ties to the Ethereum Foundation. This investigation is part of the SEC’s broader efforts to determine the regulatory classification of Ether, particularly whether it should be considered a security. The outcome of this investigation remains uncertain and could impact the approval of Ether ETFs.
It is worth noting that the SEC has previously shown a willingness to approve investment vehicles linked to Ether futures, indicating acceptance of the cryptocurrency as a commodity. However, the delay in VanEck’s ETF application has opened it up to public comment, adding another layer of scrutiny to the process.
This decision by the SEC on Ether ETFs comes after its approval in January of spot Bitcoin ETFs, which received support from the majority of commissioners. However, two U.S. Senators, Jack Reed and Laphonza Butler, have urged SEC Chair Gary Gensler to reject Ether ETF applications, citing potential risks to retail investors.
The SEC’s decision to postpone the approval or disapproval of VanEck’s Ethereum ETF application reflects its thorough review process and ongoing efforts to navigate the regulatory landscape surrounding cryptocurrencies like Ether. Market participants and investors will closely monitor the outcome of this decision and the broader regulatory stance on Ether ETFs.