SEC's Extended Review
The US Securities and Exchange Commission (SEC) is postponing its judgment on several proposed ether funds.
This delay comes amidst anticipations for the SEC's ruling on planned spot bitcoin Exchange-Traded Funds (ETFs) scheduled next month.
Hashdex Nasdaq Ethereum ETF
Brazil-based fund group Hashdex's ether ETF proposal is notably affected by this delay.
The Hashdex Nasdaq Ethereum ETF, if approved, would incorporate ether futures contracts and direct ether holdings.
This postponement by the SEC, announced on Monday, follows a previous delay last month.
Nasdaq's Argument for Ether
Nasdaq, where this new fund would be listed, presents arguments in the Hashdex ether proposal akin to those in spot bitcoin ETF applications.
The SEC, in its filings, queries public opinion on whether the rationale for Bitcoin ETFs equally applies to ether shares.
It also raises concerns about ether's vulnerability to fraud and manipulation, especially considering its unique ecosystem features.
Wider Impact on Ether ETF Proposals
The SEC's Monday filings also indicated a review process for other ether-focused ETFs.
This includes Ark 21Shares Ethereum ETF, Grayscale Ethereum Futures Trust, and VanEck Ethereum ETF.
These developments follow the SEC's recent postponement of the Invesco Galaxy Ethereum ETF decision, now slated for February 6.
Anticipation of Bitcoin ETF Decision
The SEC's ruling on a proposed spot bitcoin ETF by Ark Invest and 21Shares is due by January 10.
This decision could set a precedent for other similar proposals, including ether ETFs.
Industry Expert Insights
Neena Mishra, from Zacks Investment Research, suggests that the approval of spot bitcoin ETFs could swiftly lead to the introduction of ether spot ETFs.
James Seyffart of Bloomberg Intelligence echoes this sentiment, stating that a spot bitcoin ETF approval would put pressure on the SEC to also approve ether ETFs.
While the SEC's call for public input reflects a thoughtful approach, the continued postponement raises questions about the regulator's readiness to embrace evolving digital asset markets.
Weiliang
