Hashdex and Grayscale’s Ethereum ETFs have been granted an extended review period by the SEC due to opinions on physically-backed products.
The SEC has postponed its determination regarding the approval of two exchange-traded funds (ETFs) concentrated on Ethereum. The SEC acknowledged the initiation of ETF approval proceedings in a statement released on Monday. The commencement of legal proceedings does not indicate that the Commission has arrived at conclusive findings.
“Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change,” the statement continues.
ETF Approval Setbacks Persist
This occurred after the December 23 deadline for the Invesco Galaxy spot Ethereum ETF application was recently extended to the following year. The SEC postponed its decision regarding the Hashdex Nasdaq Ethereum and Hashdex Bitcoin futures ETF applications until November.
Furthermore, the November deadlines for spot Bitcoin ETFs offered by Franklin Templeton and Global X have been extended to the following year. Grayscale and Hashdex are currently among several companies whose applications have been rejected or delayed.
Despite the initial decision deadline not having been until January 1, 2024, the postponement has occurred. According to Bloomberg analyst James Seyffart, the SEC may be attempting to clear the application queue with this early announcement.
According to historical data, the SEC website projects that December witnessed a significant influx of submissions to the EDGAR system. The digital system utilized to submit regulatory filings is EDGAR. Several of the forthcoming prime filing periods will transpire from December 27th to December 29th, coinciding with the holiday season.
Seyffart emphasized the SEC’s initiative to solicit feedback on whether Ethereum ETFs ought to be regarded in a manner distinct from spot Bitcoin ETFs.
UPDATE: SEC Going early with delay orders for @hashdex & @Grayscale #Ethereum ETF filings. Neither were due until Jan 1, 2024.
Maybe just clearing the queue before the holidays? pic.twitter.com/LdZQxGh43L
— James Seyffart (@JSeyff) December 18, 2023“The Commission asks that commenters address the sufficiency of the Exchange’s statements in support of the proposal, which are set forth in the Notice, in addition to any other comments they may wish to submit about the proposed rule change.” the statement read.
ETFs For Ethereum And Bitcoin
A comparison of Ethereum and Bitcoin ETFs may shed light on the regulatory approach of the SEC towards various cryptocurrency ETFs. Meanwhile, the SEC has extended an invitation for public comments until December 22, and rebuttal comments are due on January 5.
It is anticipated that US regulators will make a definitive decision regarding sanctioning a tangibly backed Bitcoin ETF in January 2024. As the spot ETF filing deadlines approach, the cryptocurrency sector maintains optimism in light of SEC chairman Gary Gensler’s recent admission that the agency is examining the documents.
