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- 1 The roaster of Ethereum (ETH) ETFs postponed by the Securities of Exchange Commission (SEC), may get approval in May 2024.
- 2 The action is less expected to impact the spot Bitcoin ETF approval, predicted analysts.
Investors waiting to get involved in the cryptocurrency market without directly buying, managing, or storing digital assets must wait till May 2024. The SEC has delayed its decisions on Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF.
Why Did The SEC Do So?
News from the SEC’s office on December 18, 2023, seeks the attention of crypto enthusiasts, mainly investors. The news was related to the delayed decisions for several ETH ETFs, a financial instrument developed to offer exposure to ETH.
Individuals eagerly waiting for ETH ETFs need to wait for some more time as the SEC pushes back its decisions.
According to the SEC, it is a must to hear public opinions about whether or not the ETHs should be listed. To do so, the commission needs some time. Also, Grayscale supported the decision and joined the list of organizations whose petitions have either been denied or delayed by the regulators.
Another reason could be the planned spot Bitcoin ETF arranged for next month.
However, the SEC’s call for public input showcases a thoughtful approach but raises questions about the commission’s readiness to get involved in the growing digital asset market.
Hashdex Nasdaq Ethereum ETF, Grayscale Ethereum Futures ETF, VanEck spot Ethereum ETF, and the spot Ethereum ETF are delayed by SEC. Among these, Hashdex Ether ETF motives to hold future contracts and spot Ether whereas Grayscale’s Ethereum Futures ETF operates as a trojan horse to convert Ethereum Trust into a spot ETH ETF.
To clarify the scenario, Bloomberg ETF analysts James Seyffart and Eric Balchunas responded.
According to James Seyffart, these delays were expected sometime before December 25, 2023. The agency hasn’t yet approved a spot or mixed-type product and expected to arrive in May 2024.
Here, the main question is, Whether the delay impacts spot Bitcoin ETF.
What About Bitcoin ETF?
The entire cryptocurrency market has an eye on Bitcoin ETF approval and delays in Ethereum ETFs created a tense environment.
James Seyffart and Eric Balchunas not only analyzed the current situation of Ethereum ETFs but also took a look at BTC ETF, expected to arrive in January 2024.
According to both analysts, the commission could decide as early as January 10 on the BTC ETF. However, both are 90% sure for the Bitcoin ETF approval. On the other hand, Neena Mishra, from Zacks Investment Research, thinks that BTC ETF approval will swiftly lead to the arrival of ETH ETFs.
The approval will be going to benefit several individuals. Bitcoin ETF buyers and sellers will benefit from commissions and underlying institutional trade execution whereas retail users will benefit from retail trade execution and commissions.
Furthermore, Eric Balchunas uncovered that the spot Bitcoin ETF will charge 0.01% to trade, the average fee of ETF trading. Also, the approval will be going to raise the level of competition in the crypto industry.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
