SEC Postpones Decisions on Hashdex and ARK 21Shares Spot Ethereum ETFs to May
In Brief
US SEC postponed its decision timeline regarding the approval of the Hashdex Nasdaq and ARK Investment and 21Shares spot Ethereum ETFs.
The United States Securities and Exchange Commission (SEC) postponed its decision timeline regarding the approval of the Hashdex Nasdaq Ethereum exchange-traded fund (ETF) to May 30th, 2024. If approved, the Hashdex ETF intends to include spot Ethereum (ETH) and futures contracts.
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC in an official notice.
The Nasdaq stock exchange submitted a filing to the SEC seeking approval to list the Hashdex Nasdaq Ethereum ETF in September. The management and control of the fund lie with investment management company Toroso Investments, registered as a commodity pool operator with the Commodity Futures Trading Commission and a member of the National Futures Association. The SEC has delayed its decision on the ETF several times and solicited public comments in December.
Furthermore, the SEC announced a decision delay regarding the ARK Investment and 21Shares spot Ethereum ETF, designed to track the performance of ETH, until May 24th, 2024. Additionally, the SEC is inviting public comments on this application.
Bloomberg ETF analysts Doubt Approval for Spot Ethereum ETFs
Several asset management companies, including Franklin Templeton, BlackRock, Fidelity, Invesco Galaxy, VanEck, and Grayscale, have submitted proposals for spot Ethereum ETFs in recent months. However, optimism regarding the likelihood of SEC approval for such a product has diminished gradually over the past few weeks.
Eric Balchunas, an ETF analyst at Bloomberg, recently revised his estimate of the probability of a spot Ethereum ETF approval by May, reducing it from approximately 70% to 30%. Meanwhile, James Seyffart, fellow ETF analyst at Bloomberg, commented that the delays were anticipated. The analyst also expressed his anticipation that spot Ethereum ETFs would be denied.
“These were always going to be delay orders. The only deadline that matters is May 23rd,” said James Seyffart in a post on social media platform X. “My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will ultimately be denied on May 23rd for this round. The SEC hasn’t engaged with issuers on Ethereum specifics.”
Furthermore, James Seyffart noted that the SEC hasn’t engaged in back-and-forth discussions with the issuers regarding the spot Ethereum ETF, which contrasts the extensive discussions that occurred before spot Bitcoin ETFs were approved earlier this year in January. Analysts had previously assigned a 60-70% probability for approval in May.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
