The Securities and Exchange Commission (SEC) just announced Monday, December 18 delaying its decision on approving several Ethereum-focused exchange-traded funds (ETFs). In particular, we can find among the funds concerned the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust. Explanations.
SEC seeks public input
In its announcement, the SEC clarified that it was “initiating proceedings” regarding the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust. A procedure which aims to seek public opinion on whether exchange-traded funds should be allowed to be listed, according to the documents filed. As a reminder, the American financial policeman had already postponed its decision regarding these 2 funds last month.
Later in the day, the SEC also announced in another statement the postponement of any decision regarding the VanEck Ethereum ETFs and the ARK 21Shares Ethereum . Here too, public opinion will be sought.
The Hashdex Nasdaq Ethereum ETF, a joint initiative of Hashdex and Nasdaq, aims to provide investors with exposure to both spot Ether and futures contracts. It is managed by Toroso Investments, a company registered as a commodity pool operator with the Commodity Futures Trading Commission and a member of the National Futures Association.
The SEC’s decision to delay approval of these ETFs appears to reflect a cautious but resigned approach. In other words, it is better aligning yourself with public opinion when you have doubts but an entire ecosystem is pushing for approval. As a reminder, although the agency has approved products based on Ether futures contracts, it has not yet given the green light to an ETF based on spot Ether or a mixed fund. By October, nine futures-based products had been approved simultaneously, marking their market debut.
The SEC’s Cautious Approach
This series of postponements by the SEC is not limited to Ethereum-based products. Recently, the agency also denied a request from Coinbase, which sought new regulations from the agency for the digital assets sector. Coinbase later said it had filed a petition to review the decision in court.
Additionally, the crypto industry is eagerly waiting to know if SEC to approve Bitcoin Spot ETFswhile representatives of the firms involved met with agency staff last month to discuss details.
The SEC’s decisions in the coming months will be crucial for the future of cryptocurrency-related ETFs. They could not only influence how products based on Ethereum and other cryptos are perceived and regulated, but also shape the future of institutional investment in the digital assets sector.
Sources: Theblock, Reuters
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