The United States Securities and Exchange Commission (SEC) has extended the timeline for its decision on the potential approval of an exchange-traded fund (ETF) for spot Ether (ETH) proposed by asset manager VanEck. The commission now has until May 23 to make its final decision on whether to allow the listing and trading of shares for the VanEck Ethereum ETF on the Cboe BZX Exchange.
This decision comes after the SEC postponed deadlines for similar Ether ETF applications from Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart predicts that these applications, due in May 2024, may face denial.
Reports indicate the SEC is investigating firms linked to the Ethereum Foundation in its efforts to classify Ether as a security, raising uncertainty about ETF approvals.
The SEC began approving investment vehicles tied to Ether futures in October 2023, indicating a leaning towards classifying Ether as a commodity. Delays in VanEck’s application now allow for public comment. However, Senators Jack Reed and Laphonza Butler have urged SEC Chair Gary Gensler to reject Ether ETF applications, citing perceived risks for retail investors.
Also Read: SEC Targets Ethereum for Security Status, Issues Subpoenas
