SEC Delays Decision on Ether ETFs to May 2024

SEC Delays Decision on Ether ETFs to May 2024
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What you need to know:

The United States Securities and Exchange Commission (SEC) has postponed its decision on several Ether exchange-traded funds (ETFs) until May 2024. The agency's decision affects the Hashdex Nasdaq Ethereum ETF, the Grayscale Ethereum Futures ETF, the VanEck spot Ethereum ETF, and the spot Ethereum ETF from Cathie Wood's ARK Invest and 21Shares. The SEC has delayed its ruling to gather more public input on whether these ETFs should be listed.

Why the delay?

The SEC's decision to postpone the ruling on the Ether ETFs was expected, with Bloomberg ETF analyst James Seyffart predicting the delay to occur before December 25. The agency has previously approved Ethereum futures ETFs but has yet to approve a spot or mixed-type product. The final date for the SEC to make a decision on the Ether ETFs is set for late May.

Spotlight on Bitcoin ETFs

While the SEC's decision on Ether ETFs is pending, the market is eagerly awaiting the approval of 13 spot Bitcoin ETFs. Bloomberg ETF analysts James Seyffart and Eric Balchunas believe there is a 90% chance of a spot Bitcoin ETF approval, with the SEC potentially making a decision as early as January 10. Institutional access to Bitcoin has fueled market optimism, with the price of Bitcoin growing over 44% in the last six months. Ether's price has also seen gains, albeit slightly less significant, with a 16.8% increase in the same time frame.