The U.S. Securities and Exchange Commission (SEC) announced that it is delaying its decision on various Ether exchange-traded funds (ETFs) until May 2024. A regulatory filing made on December 18 disclosed the extension for the Hashdex Nasdaq Ethereum ETF and Grayscale. Ethereum futures ETF. The Hashdex Ether ETF is designed to include spot Ether and futures contracts, while Grayscale’s Ethereum Futures ETF is seen as a strategic move by Grayscale to pave the way for the conversion of the Ethereum Trust into a spot Ethereum ETF.
Public Comment and Regulatory Process:
The SEC cited the launch of a process to gather additional public comments as a reason for the delay. The extension is seen as an opportunity for the public to express their opinion on whether the ETF in question should be listed. The decision was expected, said Bloomberg ETF analyst James Seyffart, noting that such a delay was expected before December 25. The final date for the SEC to issue a decision on these ETFs is set for the end of May 2024.
Focus on Spot Bitcoin ETFs:
The SEC previously approved an Ethereum futures ETF but has yet to give approval to a spot or hybrid product. The market is currently focused on the possible approval of 13 spot Bitcoin ETFs, with analysts expecting a decision to be made as early as January 10th. Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 90% chance of approval for a spot Bitcoin ETF. This optimism has contributed to a surge in institutional interest in Bitcoin, with the price rising more than 44% over the past six months.
Market sentiment and price movements:
The delay in the Ethereum ETF decision comes against a market backdrop where investors are desperately waiting for regulatory clarity. Bitcoin price has seen significant growth, while Ether has seen slightly less significant gains, still seeing a notable increase of 16.8% over the same period. As the SEC navigates the evolving landscape of cryptocurrency ETFs, the market continues to pay attention to potential developments that could shape the agency’s approach to these digital assets.