Once again, the U.S. Securities and Exchange Commission (SEC) has extended its deliberation period regarding the spot Ethereum ETF applications filed by Hashdex and ARK 21Shares.
According to recent filings, the regulatory agency is extending its review to further assess the potential impact and regulatory considerations surrounding the proposed Ethereum ETFs.
“The Commission deems it necessary to extend the timeframe to evaluate whether to approve or disapprove the proposed rule change, allowing ample time for thorough consideration of the proposed rule change and the associated concerns,” the document states.
The SEC has set May 30, 2024 as the new deadline for deciding on the approval or rejection of the applications.
Bloomberg Analysts Express Doubts Regarding the Approval of ETH ETF
Both James Seyffart and Eric Balchunas, analysts at Bloomberg Intelligence ETF, have provided their nuanced forecasts regarding the impending approvals, foreseeing a potential continuation of denials in May.
Balchunas remarked, “Our likelihood of an ETH ETF approval by the May deadline has diminished to 35%. I acknowledge all the reasons why it SHOULD be approved (and personally, we believe it should), but the positive indicators and sources that had previously buoyed our optimism for BTC spot 2.5 months ago are absent this time.”
My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will ultimately be denied May 23rd for this round. The SEC hasn't engaged with issuers on Ethereum specifics. Exact opposite of #Bitcoin ETFs this fall. https://t.co/TyAzAOrAC5
— James Seyffart (@JSeyff) March 19, 2024
Seyffart echoed the sentiment, remarking, “My cautiously optimistic stance regarding ETH ETFs has shifted in recent months. We now anticipate that these will likely be denied on May 23rd for this cycle.”
The analysts interpreted the SEC’s limited engagement with the Ethereum ETF applicants as indicative of the regulatory body’s stance being “completely different” from its approach to the previously approved spot Bitcoin ETFs.
Furthermore, Seyffart indicated on social media that the SEC is likely to postpone its decision on other applications in the near future.
We are likely going to see at least 3 more #ethereum ETF delays today/tomorrow.
VanEck, Ark/21Shares, Hashdex & Grayscale are all due for delays in the next ~12 days https://t.co/xsQEWWPrPR
— James Seyffart (@JSeyff) March 19, 2024
The analyst expressed that there is a high probability of witnessing at least three additional delays in Ethereum ETF approvals within the upcoming day or so. Specifically, he mentioned that VanEck, Ark/21Shares, Hashdex, and Grayscale are all expected to face delays within the next approximately 12 days.
This statement underscores the complexity and deliberative nature of the regulatory process surrounding Ethereum ETF applications. It suggests that despite ongoing efforts by various entities to introduce Ethereum ETFs to the market, the regulatory landscape remains uncertain and subject to prolonged evaluation periods.
The anticipated delays in the approval process indicate that regulatory authorities are exercising caution and thoroughness in their assessment of these ETF proposals. This cautious approach may be attributed to the unique characteristics of Ethereum and its ecosystem, as well as the evolving regulatory framework governing digital assets.
Furthermore, these delays could impact investor sentiment and market dynamics, as they prolong the period during which investors must wait for the introduction of Ethereum ETFs. Investors may closely monitor regulatory developments and adjust their strategies accordingly based on the outcome of these deliberations.
Overall, the analyst’s remarks shed light on the ongoing regulatory challenges facing Ethereum ETFs and highlight the importance of regulatory clarity in shaping the future of digital asset investment products.
