The SEC has decided to delay its decision on VanEck’s application for a spot Ether exchange-traded fund (ETF). The Cboe BZX Exchange’s request to list and trade shares of the VanEck Ethereum ETF will now be reviewed until May 23. This extension allows the SEC more time to thoroughly consider the proposed rule change. The SEC has also postponed the approval of spot Ether ETFs from Hashdex and ARK 21Shares, leading some experts to speculate that these applications will ultimately be denied.
There have been reports suggesting that the SEC is investigating firms with alleged ties to the Ethereum Foundation, which could impact the classification of Ether as a security and potentially affect the approval of ETH ETFs. The commission has previously approved investment vehicles tied to Ether futures, indicating a growing acceptance of the cryptocurrency as a commodity. The delay on VanEck’s application has also opened it up to public comment.
It is worth noting that the SEC began allowing U.S. exchanges to list and trade shares of spot Bitcoin ETFs in January. However, two U.S. Senators, Jack Reed and Laphonza Butler, have urged SEC Chair Gary Gensler to reject Ether ETF applications, citing concerns about the risks it may pose to retail investors.