The U.S. Securities and Exchange Commission (SEC) has deferred decisions on several proposed Ethereum-focused exchange-traded funds (ETFs). The SEC announced the initiation of proceedings for the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust, soliciting public input on whether these ETFs should be permitted to be listed.
Public input sought for Ethereum ETFs
On Monday, the SEC extended its deliberation to include the VanEck Ethereum ETF and the ARK 21Shares Ethereum ETF, seeking additional public input. Notably, the regulatory body has previously approved Ethereum futures-based ETFs but has not granted approval for spot ether or mixed funds.
While the cryptocurrency industry is keenly awaiting the commission’s decision on spot Bitcoin ETFs, the agency has engaged with firms in discussions over the past month to scrutinize details. The Hashdex Nasdaq Ethereum ETF, which aims to hold both spot ether and futures contracts, has faced a delay in SEC’s decision. Managed and controlled by Toroso Investments, registered as a commodity pool operator, the ETF awaits a conclusive verdict.
Delay impact on Grayscale and Hashdex
Grayscale, a prominent player in the crypto space, finds its proposed Ethereum Futures Trust ETF among those affected by the SEC’s decision delay. This comes in the wake of the agency’s questioning of potential concerns regarding fraud and manipulation related to Ethereum’s proof-of-stake consensus.
The SEC’s recent move follows its denial of Coinbase Global’s petition for new rules in the digital asset sector. Coinbase, in response, has filed a petition for a review of the decision in court. The regulatory body’s postponement of Hashdex’s Ethereum ETF adds to the list of firms experiencing delays or denials in their ETF listing aspirations.
Comments invited; deadline in 21 days
In an effort to maintain transparency and gather diverse perspectives, the commission has invited comments from the public. Stakeholders and interested parties have approximately 21 days to provide input on the VanEck, Grayscale, ARK 21Shares, and Hashdex Ethereum ETFs.
As the crypto community awaits these crucial decisions, the industry remains attentive to potential shifts in the regulatory landscape. The SEC’s decisions on these Ethereum-focused ETFs will undoubtedly shape the trajectory of cryptocurrency investment products in the U.S. market, warranting close observation from both industry participants and investors alike.