YEREVAN (CoinChapter.com) — The United States Securities and Exchange Commission (SEC) recently pushed back its decision on the proposed spot Ether (ETH) exchange-traded funds (ETFs) by Hashdex and ARK 21Shares. The announcement, made on March 19, came just shy of the agency’s “third deadline,” signaling a delay in the much-anticipated verdict on these applications.
May Verdicts Loom for ARK 21Shares and Hashdex Ether ETFs
Both the Ether ETF proposals from ARK 21Shares and Hashdex are now slated for a final decision in late May. Specifically, the SEC has marked May 24 as the date by which it will make its final decision regarding the ARK 21Shares application. Meanwhile, Hashdex’s proposal is expected to reach its moment of truth on or before May 30.
The delay has broader implications for the financial industry, affecting not only the applicants, such as Hashdex and ARK Invest/21Shares but also the trajectory of Ethereum-based financial products more generally.
For instance, Hashdex’s anticipation for the approval of its Nasdaq Ethereum ETF, which plans to incorporate both spot and futures contracts, is now extended. Other notable applications facing delays include the Grayscale Ethereum Futures ETF and the VanEck spot Ethereum ETF, as well as a proposal by Cathie Wood’s ARK Invest and 21Shares. These postponements signal a critical moment in the regulatory landscape for cryptocurrency ETFs.
Analysts Skeptical Over Ether ETF Approvals Amid SEC Quiet
Recently, the mood among analysts has shifted to a more pessimistic view regarding the approval prospects for the eight Ether ETFs currently proposed by major firms like BlackRock, Grayscale, Fidelity, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton.
Bloomberg’s ETF expert, James Seyffart, shared on an X post dated March 19 that his worries have deepened due to the noticeable absence of communication between the SEC and the companies behind these ETF proposals.
“My cautiously optimistic attitude for ETH ETFs has changed from recent months,”
“We now believe these will ultimately be denied May 23rd for this round.”
The industry is in a holding pattern, waiting for the SEC to finalize its decisions on Ethereum ETFs. Ethereum’s classification as a commodity is pending. This will impact crypto regulation. SEC delays reflect a focus on detail. Their process acknowledges crypto’s unique challenges in finance.
