Cryptocurrency NewsSEC Postpones Ethereum ETF Decision Again

SEC Postpones Ethereum ETF Decision Again

The U.S. Securities and Exchange Commission (SEC) has once more deferred its verdict on an Ethereum-based Exchange-Traded Fund (ETF), specifically affecting the application by VanEck for an Ethereum ETF by assigning a new decision date. The regulatory body has now scheduled May 23 as the new deadline for its decision, simultaneously opening the floor for public commentary on this subject. This move underscores the regulator’s prudence when dealing with cryptocurrencies.

In a recent document, the SEC articulated its decision to allocate additional time for a thorough review of the proposed ETF, incorporating considerations from Amendment No. 1 and various concerns presented. This delay is consistent with prior postponements experienced by other Ethereum ETF proposals, such as those by Hashdex Nasdaq and ARK 21Shares, reflecting the SEC’s hesitance to green-light ETFs rooted in cryptocurrency.

The growing interest in a potential approval for a spot Ethereum ETF, especially from heavyweight industry players like Fidelity and BlackRock whose applications have also faced delays, marks a critical area of focus. Despite the heightened anticipation, recent developments have tempered expectations, with Bloomberg’s ETF expert Eric Balchunas revising his prediction for a May approval from a hopeful 70% to a mere 35%.

Amidst these successive delays, the SEC’s heightened vigilance over the cryptocurrency sector is evident. A notable development in this regard is the Ethereum Foundation’s disclosure of a voluntary, confidential request for information from an unidentified government entity.

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