The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision-making process regarding several Ethereum-based Exchange Traded Funds (ETFs) until May 2024. In regulatory filings on December 18, the SEC deferred its rulings on the Hashdex Nasdaq Ethereum ETF and Grayscale Ethereum Futures ETF.
The Hashdex Ethereum ETF intends to include both spot ether and futures contracts in its portfolio, while Grayscale’s Ethereum futures ETF is regarded as a strategic move by Grayscale, potentially compelling the SEC to allow the transformation of its Ethereum trust into a spot Ethereum ETF.
Explaining its decision in the filings, the SEC expressed the initiation of a process to gather additional public input on the potential listing of these ETFs. Moreover, the agency deferred decisions on other spot Ethereum ETF proposals, including submissions from VanEck, Cathie Wood’s ARK Invest, and 21Shares.
Bloomberg's ETF analysts, James Seyffart and Eric Balchunas, anticipated these delays, predicting their arrival before December 25. While the SEC has previously sanctioned Ethereum futures ETFs, it hasn't yet approved spot or hybrid products. Attention in the market remains focused on the potential approval of 13 spot Bitcoin ETFs, primarily in front of institutional investors, with expectations for a decision by the SEC as early as January 10, 2024.
The analysts are positive about the prospects, giving a 90% likelihood of approval for a spot Bitcoin ETF. The growing optimism among institutions acquiring Bitcoin has contributed to market enthusiasm, as evidenced by Bitcoin's price surge of more than 44% over the past six months. In the same period, Ethereum's price has risen by 16.8%, although its gains have been marginally less impressive, as per TradingView data.
