Breaking: Hashdex Ethereum ETF Faces SEC Decision Hold Until May

The Securities and Exchange Commission (SEC) has postponed its decision on the approval of the Hashdex Nasdaq Ethereum exchange-traded fund (ETF) until May 30, 2024. This ETH ETF, which will be offered to investors if approved, will represent an investment product with access to both ongoing ether prices and futures.

This postponement will provide the SEC the chance to review the proposed rule change, taking into account all the concerns, and provide the solution in time. It underlines that the authority wants to observe how crypto-related products function within the financial system and what place they will be given in the future.

Nasdaq made an application for the Hashdex Nasdaq Ethereum ETF in September, with Toroso Investment Management acting as the fund’s manager. Toroso Investments is accounted for as a Commodity Pool Operator by the Commodity Futures Trading Commission and a member of the National Futures Association.

The SEC’s decision has been rekindled many times, thus displaying how hard it is to judge these products, particularly for stock-related cryptos. Furthermore, as another part of its effort, the SEC also calls for public contribution to the consideration process to strengthen public confidence in the agency’s transparency and fairness.

Hashdex ETF Approval Delayed, Reflecting SEC Caution

The postponement is made to correspond with the potential launch date for the ARK 21Shares Ethereum ETF, which has been scheduled for May 24, 2024. This is not the only case of SEC reluctance, which can be seen not only with the Hashdex application but also with other Ether ETF proposals, such as those from well-known companies like Fidelity and BlackRock. While recent directional changes in some regulators’ attitudes have initially caused a back-down in the timeline forecast for a spot ether ETF, the possibility is still not completely ruled out, experts say.

Eric Balchunas, a Bloomberg ETF analyst, adjusted his view about the chances of securing Ethereum ETF approval in May from 70 percent to 30 percent. Apparently, his confidence in Ethereum ETF approval softens. James Seyffart from Bloomberg agreed with that and mentioned that the final decision to be given on May 23, which is almost a month ahead, is also vital. Seyffart’s tone has developed into pessimism as he deems that spot Ethereum products may likely get rejected prior to their Premier listing due to the disengagement of the SEC on the topic of Ethereum, unlike its position on spot Bitcoin ETF.

SEC Approves Ether Futures, Cautious on Spot ETFs

The SEC has granted its approval for ether futures as well as Ether ETFs similar to those that ETFs have, but the SEC takes a more conservative approach in regard to Spot ether ETFs and mixed ones. In October, the commission made a move in line with its authorization to approve the launch of nine futures-based products simultaneously, thus marking a new step in their openness to cryptocurrency-based investments but with a careful approach. The very fact that product verification is being continuously reiterated, and its launch has been delayed, speaks volumes of regulatory risks and implications associated with the entry of crypto ETFs into mainstream markets.

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