Will the SEC Greenlight Ether ETFs? VanEck Application Delayed, Public Can Now Weigh In

The wait for a spot Ether ETF in the US just got longer. The Securities and Exchange Commission (SEC) announced on March 20th that it has postponed its decision on VanEck’s application to list an ETF directly tied to Ethereum (ETH). This move comes alongside similar delays for other spot Ether ETF proposals, raising questions about the regulatory landscape for the world’s second-largest cryptocurrency.

The SEC has extended its review period for VanEck’s ETF until May 23rd, citing the need for “sufficient time to consider” the proposal. This follows previous delays for spot Ether ETF applications from Hashdex and ARK 21Shares. Analyst James Seyffamesrt of Bloomberg suggests these applications could ultimately be rejected.

The SEC’s hesitation might be linked to ongoing investigations into potential ties between some ETF applicants and the Ethereum Foundation. These investigations seem to hinge on whether Ether itself should be classified as a security, which would subject it to stricter regulations. This contradicts the SEC’s approval of Bitcoin futures ETFs in October 2023, seemingly indicating some acceptance of Ether as a commodity.

Also Read: Ether ETF Approval Stalled: 52% of Investors Left Out as Institutions Scramble (Retail Holds Half of Global Assets)

The delay on VanEck’s application also opens the door for public comment. This offers investors and interested parties a chance to voice their opinions on the viability and potential risks of a spot Ether ETF.

This development comes amidst concerns raised by some US Senators regarding Ether ETFs. Senators Jack Reed and LaPhonza Butler have urged SEC Chair Gary Gensler to reject such applications, citing potential “enormous risks” for retail investors.

The SEC’s actions paint a picture of a cautious regulatory body navigating the complexities of the cryptocurrency market. While the approval of Bitcoin futures ETFs signaled a potential shift, the delays on spot Ether ETFs suggest a more thorough examination before allowing direct investment in the underlying asset. With the May 23rd deadline looming and public comment now a factor, the future of spot Ether ETFs in the US remains uncertain.

About The Author

Dora Lilian

With a keen eye on the latest trends and developments in the crypto space, I’m dedicated to providing readers with unbiased and insightful coverage of the market. My goal is to help people understand the nuances of cryptocurrencies and make sound investment decisions. I believe that crypto has the potential to revolutionize the way we think about money and finance, and I’m excited to be a part of this unfolding story.

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