Crypto fans who were hoping for a launch of spot ETFs at the beginning of the new year were recently dealt a blow by the US Securities and Exchange Commission.
• Decision on ETHER spot EFT postponed
• SEC needs more time
• Approval or rejection expected in May
To many crypto observers, it already seemed a foregone conclusion that the US Securities and Exchange Commission (SEC) would approve Grayscale’s application to approve an ETHER spot ETF. But the stock market watchdog apparently needs more time than hoped for the check.
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Decision on four applications postponed
According to the SEC announcement, the deadline for approval or rejection of a proposed rule change will be extended to May. Specifically, it concerns the two products Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. While the former primarily wants to hold spot ETHER and futures contracts, Grayscale is taking a different approach: The asset manager wants to convert an already active product, its Ethereum trust, into an Ethereum spot ETF.
There will also be no decision made initially on other applications, such as the VanEck Spot Ethereum ETF and the Spot Ethereum ETF from Cathie Woods ARK Invest and 21Shares. Stock market star Wood prepared the launch of an Ethereum spot ETF together with 21Shares in September 2023. Experts confirm that the stock market expert’s application has a chance of success.
In connection with a possible decision, the SEC is also relying on assessing public interest in such products. The authority said it was initiating a process to gather further public opinions on whether the ETFs should be listed or not.
Bitcoin spot ETF nears approval
In the final weeks of 2023, hopes for the approval of a Bitcoin spot ETF in particular supported the price of the oldest cryptocurrency, Bitcoin. Here too, the SEC has not yet made a decision, but the crypto community assumes that the stock market watchdog will wave through one or more products at the beginning of the year. If the stock exchange supervisory authority decides positively on one of the existing applications, investors can invest in Bitcoin using a passive fund by purchasing shares that are linked to the performance of the crypto veteran. So you can invest in cryptocurrencies without owning them yourself.
The same applies to the targeted Ethereum spot ETFs. Products of this type are aimed at investors who are less risk-conscious and want to benefit from the performance of digital currencies without adding them to their portfolio themselves.
Editorial team finanzen.net