Main Pointers:

  • SEC’s Ethereum ETF Decision Extension: Highlight the SEC’s decision to delay the approval process for Ethereum ETFs, pointing out the affected ETFs and the revised timeline for a potential decision in May 2024.
  • Market Focus on Bitcoin ETFs: Emphasize the market’s anticipation regarding the approval of Bitcoin ETFs by the SEC, noting analysts’ predictions and the potential impact on the cryptocurrency market based on these expectations.

The United States Securities and Exchange Commission (SEC) has announced an extension in the decision-making process for several Ethereum exchange-traded funds (ETFs), deferring the final verdict until late May 2024. This move comes after the agency delayed its judgment on multiple Ether tickers, including the Hashdex Nasdaq Ethereum ETF and Grayscale Ethereum Futures ETF, in regulatory filings dated December 18.

Read more: SEC Extends Grayscale Ethereum ETF Decision to January 25, Adopting a Cautious Approach

The Hashdex Ether ETF aims to encompass both spot Ether and futures contracts, while Grayscale’s Ethereum Futures ETF has been viewed as a strategic move, positioning itself to potentially steer the SEC into permitting the conversion of Grayscale’s Ethereum Trust to a spot Ethereum ETF.

In light of these developments, the SEC has signalled a need for further deliberation, instituting proceedings to gather additional public input regarding the potential listing of these ETFs. Additionally, the agency postponed decisions concerning the VanEck spot Ethereum ETF and the spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares.

Bloomberg ETF analysts, James Seyffart and Eric Balchunas, anticipated these delays, suggesting that the SEC’s final call on these ETFs is slated to occur no later than late May. Despite prior approvals for Ethereum futures ETFs, the SEC is yet to greenlight a spot or mixed-type product for Ethereum.

While attention remains on Ethereum, a significant focus within the market revolves around the possibility of the SEC approving 13 spot Bitcoin ETFs. Analysts speculate that the SEC could announce decisions as early as January 10, with Seyffart and Balchunas pegging the chances of approval at 90%. The potential approval of Bitcoin ETFs has buoyed market optimism for institutional access to Bitcoin, witnessing a notable surge in Bitcoin’s price by over 44% in the last six months.

Although Ether experienced a less pronounced surge of 16.8% within the same period, market attention persists, with the crypto community keenly observing these regulatory decisions and their implications on both Ethereum and Bitcoin.

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