SEC Delays ETH ETF Decision
The United States Securities and Exchange Commission (SEC) has chosen to postpone its decision on the approval or disapproval of spot Ether (ETH) exchange-traded fund (ETF) applications from ARK 21Shares and VanEck.
In recent notifications filed on September 27, the SEC has opted to extend the deliberation period regarding the approval or disapproval of a proposed rule alteration that would facilitate the listing of spot ETH ETFs from VanEck and ARK 21Shares on the Cboe BZX Exchange. The commission explained that no public comments had been received on either proposal, and they have decided to extend the deadlines for further evaluation or a final verdict to December 25 and December 26, respectively.
"The Commission deems it necessary to prolong the evaluation period for the proposed rule change to allow ample time for a thorough consideration of the proposal and the issues it presents," stated the SEC.
This delay coincided with the day when the Nasdaq Stock Market submitted a proposed rule modification to the SEC regarding the listing of its diversified ETH ETF, combining spot Ether holdings and futures contracts. On September 27, proposed rule adjustments were also submitted to the New York Stock Exchange Arca for the Grayscale Ethereum Futures Trust, Hashdex Bitcoin Futures ETF, and the Cboe BZX Exchange for the Franklin Bitcoin ETF.
On September 26, the SEC disclosed its intention to extend the assessment period for deciding on spot Bitcoin (BTC) ETF applications from ARK 21Shares and Global X. The commission's notice was filed several weeks prior to the impending deadlines for both investment products, postponing the final decision on ARK 21Shares’ ETF to January.
In August, Cathie Wood, the founder and CEO of ARK Investment Management, speculated that if the SEC progresses with approving spot ETFs, it might opt for simultaneous multiple listings to prevent granting a competitive edge to any specific company in the market. These observations were made before Grayscale Investments succeeded in a legal battle with the SEC concerning its spot Bitcoin ETF application, a case likely to be under review.
Up to now, the SEC has never sanctioned a spot crypto ETF in the U.S., although it has permitted the listing of crypto-linked futures ETFs and a leveraged Bitcoin futures ETF. The upcoming deadlines for spot crypto ETF applications from various firms, including BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, and Fidelity, are set for October.