The Securities and Exchange Commission (SEC) of the United States has decided to postpone the potential approval of an application for a spot Ether (ETH) exchange-traded fund (ETF) from VanEck, an asset manager.
According to a notice issued on March 20, the SEC has extended the timeframe for approving or disapproving the listing and trading of shares of the VanEck Ethereum ETF on the Cboe BZX Exchange. The final decision for the investment vehicle will now be made by May 23.
The SEC stated that it requires more time to carefully consider the proposed rule change, which is why the extension was necessary.
This announcement follows the SEC’s decision to extend the deadlines for approving spot Ether ETFs from Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart predicts that the current round of Ether ETF applications with deadlines in May 2024 will likely be denied.
It has been reported that the SEC is conducting investigations into firms allegedly connected to the Ethereum Foundation in an effort to determine whether Ether should be classified as a security. The outcome of this investigation could have implications for the approval of ETH ETFs.
In October 2023, the SEC began approving investment vehicles linked to Ether futures, indicating its acceptance of the cryptocurrency as a commodity. The delay in VanEck’s application has also allowed for public comments on the proposal.
On January 10, the SEC started allowing U.S. exchanges to list and trade shares of spot Bitcoin (BTC) ETFs. The majority of commissioners supported the rule changes. However, two U.S. Senators, Jack Reed and Laphonza Butler, have urged SEC Chair Gary Gensler to reject Ether ETF applications, citing potential risks for retail investors.
Source: James Seyffart
Magazine: Hodler’s Digest, March 10-16