SEC Extends Evaluation Period for Ethereum ETFs Until May 2024

The US Securities and Exchange Commission (SEC) has said that it will delay reaching a judgment about exchange-traded funds (ETFs) that use Ethereum. The deadline for the regulatory authority to assess applications from asset management companies, such as VanEck, Hashdex, and Ark Invest/21Shares, has been extended to May 2024.

Applications to approve Ethereum ETFs were filed in September by Hashdex, VanEck, and Ark Invest/21Shares. The SEC has chosen to extend the review time, nevertheless, stating that further thought is required. The securities regulator’s postponement orders point to a change in the timing for these ETF decisions.

Varied Approaches to Ethereum ETFs

Ethereum ETFs that monitor the spot price of ether (ETH) are proposed by VanEck and Ark Invest/21Shares, while Hashdex plans to launch a hybrid fund that combines spot and futures price movements. The proposed rule modifications for the listing of these items will be approved or disapproved by the SEC through its decision-making process.

The public can now comment on the Ethereum ETF applications due to the SEC’s delay. In relation to the suggested rule amendments, the regulator has requested interested parties to submit written opinions, information, and arguments. Thirty-five days after the applications are formally published in the Federal Register, the public comment period will continue.

The SEC made it clear that no judgments about the current concerns are implied by the commencement of proceedings. In order to better comprehend the many viewpoints, worries, and information regarding the planned Ethereum ETFs, the regulatory body is asking for feedback from interested parties.