The United States Securities and Exchange Commission (SEC) has extended its timeline for deciding on multiple Ether exchange-traded funds (ETFs) applications to May 2024. As per recent regulatory updates on December 18, the SEC has delayed its verdict on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF.
Hashdex’s proposed Ether ETF aims to incorporate a mix of spot Ether and futures contracts. Conversely, Grayscale’s Ethereum Futures ETF, considered a strategic move, could compel the SEC to allow the conversion of Grayscale’s Ethereum Trust into a spot Ethereum ETF.
The SEC’s decision to postpone includes initiating proceedings to seek additional public feedback on the viability of these ETFs. The delay also affects the decisions for VanEck’s spot Ethereum ETF and the joint application from ARK Invest and 21Shares for their spot Ethereum ETF.
James Seyffart, a Bloomberg ETF analyst, anticipated these delays, expecting a resolution before December 25. He highlighted that a definitive decision from the SEC is expected by late May.
While the SEC has previously greenlit Ethereum futures ETFs, it remains hesitant to approve any spot or hybrid Ethereum ETFs. The focus of the crypto market is also on the SEC’s impending decision regarding 13 spot Bitcoin ETF applications, with a potential decision expected as early as January 10, 2024.
Seyffart, alongside fellow analyst Eric Balchunas, predicts a 90% likelihood of a spot Bitcoin ETF approval, a development that has positively influenced market sentiment. Over the past six months, Bitcoin has seen a notable 44% price increase, while Ethereum has also enjoyed a 16.8% rise in the same period, according to TradingView statistics.