The United States Securities and Exchange Commission (SEC) has announced an extension of its review period for several Ethereum exchange-traded funds (ETFs), pushing the decision date to May 2024. The affected ETFs include the Hashdex Nasdaq Ethereum ETF, the Grayscale Ethereum Futures ETF, the VanEck spot Ethereum ETF, and the spot Ethereum ETF proposed by ARK Invest and 21Shares. The agency cited the need for further public input on whether these ETFs should be listed, signaling a potential delay in regulatory approval for Ethereum-based funds.


The Hashdex Nasdaq Ethereum ETF is designed to hold both spot Ether and futures contracts, while Grayscale's Ethereum Futures ETF is seen as a strategic move to facilitate the conversion of Grayscale's Ethereum Trust to a spot Ethereum ETF. The delay in the decision aligns with expectations, with Bloomberg ETF analysts predicting such developments before December 25.

This decision comes in the context of the SEC's previous approval of Ethereum futures ETFs, while a spot or mixed-type product is yet to receive regulatory clearance. The market is closely watching for potential approval of 13 spot Bitcoin ETFs, with analysts estimating a 90% chance of approval by January 10. This optimism revolves around the anticipated institutional access to Bitcoin, which has witnessed a significant 44% price increase in the last six months.

As the regulatory landscape continues to evolve for cryptocurrency ETFs, market participants remain hopeful for broader acceptance and access to digital assets through traditional financial products. The extended review period for Ethereum ETFs emphasizes the SEC's cautious approach, leaving stakeholders eagerly awaiting further developments in the coming months.

(TOM MITCHELHILL, COINTELEGRAPH, 2023)