SEC Delays Hashdex Ethereum ETF Decision To May

SEC has postponed its decision on the Hashdex Ethereum ETF until May 30, 2024, citing need for further examination. 

The Securities and Exchange Commission (SEC) has decided to delay its decision regarding the approval of the Hashdex Ethereum ETF based on the Hashdex Nasdaq Ethereum exchange until May 30, 2024.

If approved, the Hashdex Ethereum ETF will represent an investment instrument that gives investors access to both ongoing ether prices and futures.

Hashdex Ethereum ETF Approval Delayed

As a result of this postponement, the Securities and Exchange Commission will have the opportunity to examine the proposed rule change, taking into account all of the concerns, and provide a remedy promptly.

This underscores the authority’s interest in observing the operation of crypto-related products within the financial system and determining their future role.

Nasdaq applied in September to manage the Hashdex Ethereum ETF, selecting Toroso Investment Management for this role.

The Commodity Futures Trading Commission and the National Futures Association recognize Toroso Investments as a commodity pool operator.

Additionally, Toroso Investments is in the National Futures Association. The SEC’s repeated renewals of its decision underscore the complexity of evaluating these products, especially those associated with stock-related cryptocurrencies.

Additionally, as an additional component of its efforts, the Securities and Exchange Commission (SEC) is requesting that the public participate in the consideration process to bolster public trust in the agency’s ability to be transparent and fair.

We implemented the postponement to align with the potential launch date of the ARK 21Shares Ethereum ETF, originally scheduled for May 24, 2024.

Furthermore, this is not the first instance of the Securities and Exchange Commission (SEC) exhibiting hesitation, as evidenced not just by the Hashdex Ethereum ETF application but also by other Ether exchange-traded fund (ETF) proposals, including those from well-known corporations such as Fidelity and BlackRock.

Experts still do not entirely rule out the prospect of a spot ether exchange-traded fund (ETF). However, recent directional changes in some regulators’ attitudes have first prompted a back-down in the projected timeframe for anything like this.

Eric Balchunas, an ETF analyst for Bloomberg, revised his forecast regarding the likelihood of obtaining approval for an Ethereum exchange-traded fund in May, reducing it from 70 percent to 30 percent.

It would appear that his faith in the acceptance of Ethereum ETFs is decreasing. That was something that James Seyffart from Bloomberg agreed with, and he also noted that the final decision, which is scheduled to be made on May 23, about a month in advance, is also crucial.

Seyfart’s tone has turned more pessimistic, concluding that the rejection of spot Ethereum products before their Premier listing is likely. This is because the SEC has disengaged from the topic of Ethereum, in contrast to its position on the spot Bitcoin ETF.

SEC Approves Ether Futures

Although the Securities and Exchange Commission (SEC) has given its clearance to ether futures and ether exchange-traded funds (ETFs) that are comparable to those that ETFs have, the SEC takes a more conservative approach when it comes to spot ether ETFs and mixed ETFs.

In October, the commission took a step following its permission to authorize the launch of nine futures-based products simultaneously. This marked a new step in the commission’s openness to investments based on cryptocurrencies, although it was done so with caution.

The fact that product verification is being repeatedly emphasized, in addition to the fact that its launch has been postponed, is a clear indication of the regulatory dangers and repercussions that are linked with the introduction of cryptocurrency exchange-traded funds (ETFs) into mainstream markets.