The SEC has extended the deadline for its decision on the Hashdex Nasdaq Ethereum ETF until May 30, 2024, to conduct a more thorough review.
This ETF aims to offer exposure to both spot ether and futures contracts.
The SEC is actively seeking public input on the Hashdex ETH ETF application, demonstrating its commitment to openness. The approval of the Hashdex Nasdaq Ethereum exchange-traded fund (ETF) has been delayed by the Securities and Exchange Commission (SEC) until May 30, 2024. This ETH ETF, if approved, will provide investors with an investment product that offers access to both current ether prices and futures.
This delay will allow the SEC to thoroughly examine the proposed rule change, consider all concerns, and deliver a timely solution. It emphasizes the authority’s interest in monitoring the performance of crypto-related products within the financial system and determining their future role.
In September, Nasdaq applied for the Hashdex Nasdaq Ethereum ETF, with Toroso Investment Management as the fund’s manager. Toroso Investments, recognized by the Commodity Futures Trading Commission as a Commodity Pool Operator, is also a member of the National Futures Association.
Revisiting the SEC’s decision multiple times underscores the challenge of evaluating these products, particularly those linked to stocks in the cryptocurrency market. In addition, as part of its efforts, the SEC encourages public participation in the consideration process to enhance public trust in the agency’s transparency and fairness.
Hashdex ETF Approval Delayed, Reflecting SEC Caution
The delay aligns with the anticipated release date of the ARK 21Shares Ethereum ETF, set for May 24, 2024. This is just one example of the SEC’s hesitancy, evident in the Hashdex application and other Ether ETF proposals, including those from reputable companies like Fidelity and BlackRock. Despite regulators’ perspectives shifting, the projected timeline for a spot ether ETF has experienced delays. However, experts assert that only partial acceptance exists regarding the likelihood of its approval.
Eric Balchunas, a Bloomberg ETF analyst, revised his outlook on the likelihood of obtaining Ethereum ETF approval in May, lowering it from 70 percent to 30 percent. His optimism regarding the approval of the Ethereum ETF has diminished. James Seyffart from Bloomberg concurred with that and emphasized the significance of the final decision, which is scheduled to be announced on May 23, nearly a month from now. Seyffart’s tone has taken a negative turn as he believes that spot Ethereum products may face rejection before their Premier listing. This is due to the SEC’s lack of engagement on Ethereum, unlike its stance on spot Bitcoin ETFs.
SEC gives the green light to Ether Futures, Remains Cautious on Spot ETFs
The SEC has approved ether futures and Ether ETFs similar to those. However, the SEC adopts a more cautious approach regarding Spot ether ETFs and mixed ones. In October, the commission took action following its authorization to approve the launch of nine futures-based products simultaneously. This represents a new milestone in their willingness to embrace cryptocurrency-based investments while maintaining a cautious approach. The repeated emphasis on product verification and the ongoing delays in its launch highlight the significant regulatory risks and implications of introducing crypto ETFs into mainstream markets.
