HomeCryptoEthereumETF on Ethereum: the SEC also delays the decision on Ark 21Shares

ETF on Ethereum: the SEC also delays the decision on Ark 21Shares

The Securities and Exchange Commission of the USA (or SEC) is dealing with delays in its decision to approve or not the Ethereum spot ETFs. The latest extension also concerns Ark 21Shares which, according to James Seyffart, should expire on May 23rd. 

Ethereum Ark 21Shares ETF: SEC delays decision on its approval

According to what reported, the Securities and Exchange Commission of the USA (or SEC) is extending its verdict regarding the applications for the issuance of ETFs on Ethereum spot.

The latest extension also concerns Ark 21Shares, on which the SEC is also seeking public comments on this issue.  

“The Commission believes it is appropriate to designate a longer period within which to issue an order of approval or disapproval of the proposed regulatory amendment, in order to have sufficient time to consider the proposed regulatory amendment and the issues raised therein”

Not only that, in the same communication, the SEC also talks about delaying its decision on Hashdex’s application for its Ethereum ETF. 

The Nasdaq stock exchange submitted a request to the SEC for the listing of the Hashdex Nasdaq Ethereum ETF in September. The fund is managed and controlled by Toroso Investments, registered as a commodity pool operator with the Commodity Futures Trading Commission and a member of the National Futures Association.

ETF on Ethereum: SEC extends verdicts on Ark 21Shares and other applications

Apparently, the SEC is taking time to decide whether to approve or not the applications for Ethereum spot ETFs not only from Ark 21Shares and Hashdex, but also from other companies. 

And indeed, James Seyffart, an analyst at Bloomberg ETF, stated that the delays reported by the SEC on Tuesday were already expected

Seyffart had already listed VanEck, Ark 21Shares, Hashdex, and Grayscale as all the Ethereum spot ETF applications expected to experience delays in the next approximately 12 days.

Not only that, Seyffart then added the following: 

I should add. These orders would always be delayed. The only deadline that matters is May 23. This has always been the case:

The SEC has just delayed the #Ethereum ETF by @InvescoUS and @galaxyhq. 100% expected and more delays will continue to occur in the coming months. The only date that matters for spot #ethereum ETFs right now is May 23. Which is the final expiration date of @vaneck_us.

The same analyst, however, points out how his sentiment has changed, now believing that these requests for Ethereum spot ETFs will be rejected by the SEC on May 23. 

“My cautiously optimistic attitude towards ETH ETFs has changed compared to the last few months. Now we believe that ultimately these will be rejected on May 23 for this round. The SEC has not engaged with issuers on Ethereum specifics. Exactly the opposite of the #Bitcoin ETFs this fall.”

The Grayscale application just modified

Just yesterday, the news leaked that Grayscale has filed the amended form 19-4 to succeed in its mission to list ETHE on NYSE Arca.

Not only that, its Chief Legal Officer, Craig Salm, wanted to comment on this action, stating that investors deserve access to Ethereum in the form of an Exchange-Traded Fund on Ethereum spot.

However, even for Grayscale, the SEC seems to continue delaying its decision on approval or not

And indeed, its application for ETFs on spot ETH started last October, triggering a review process by the SEC that should last 240 days. 

Stefania Stimolo
Stefania Stimolo
Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.