SEC Puts Off its Decision on Spot Ethereum Exchange-traded Funds

The approval decision for the Hashdex Nasdaq Ethereum exchange-traded fund (ETF) has been delayed by the Securities and Exchange Commission (SEC) until May 30, 2024.

This is just one instance in a series of delays for Ethereum ETFs, highlighting the cautious approach of the SEC when it comes to cryptocurrency investment products.

The proposed Hashdex ETF, managed by Toroso Investments, aims to provide investors with exposure to Ethereum through a regulated, exchange-traded format.

It plans to hold both spot ether and futures contracts. Another Ethereum ETF, the ARK 21Shares ETF, has also been delayed until May 24, 2024, as the SEC continues to deliberate on its decision.

Bloomberg ETF analysts Eric Balchunas and James Seyffart both believe that the chances of approval for spot Ethereum ETFs have diminished, with Balchunas adjusting his estimate from 70% to 30% and Seyffart expecting a denial by May 23.

Despite the SEC’s previous approvals for futures-based Ethereum ETFs, the agency has yet to approve any spot or mixed ETFs.