However, the decision on ETFs from VanEck and ARK related to Ethereum has been postponed.
The SEC’s decision to begin considering the crypto ETFs from Franklin Templeton and Hashdex marks a notable development in the ongoing efforts to introduce such investment products in the United States. These ETFs could potentially open doors for investors looking to gain exposure to cryptocurrencies through traditional financial markets.
In contrast, the delay in the decision regarding the ETFs proposed by VanEck and ARK for Ethereum suggests that the SEC is taking additional time to assess the applications. The delay could be related to regulatory concerns or the need for further evaluation before reaching a conclusion.
Overall, these developments highlight the regulatory scrutiny and cautious approach taken by the SEC when considering crypto-related investment products, underscoring the complexity of integrating cryptocurrencies into traditional financial markets.
The U.S. Securities and Exchange Commission (SEC) is actively reviewing applications for spot cryptocurrency exchange-traded funds (ETFs) from Franklin Templeton and Hashdex. Simultaneously, the SEC has decided to delay its rulings on the ether ETF applications submitted by VanEck and ARK.
Franklin Templeton’s application is for a bitcoin spot ETF, while Hashdex has applied for a spot ether ETF, according to filings with the SEC. The regulatory body typically has a maximum of 240 days from the Federal Register filing date to either approve or deny an ETF application. This schedule would set the decision date for these proposed funds in late May 2024, with various interim deadlines during which the SEC can seek additional public input, potentially prolonging the final verdict.
The SEC has often utilized the entire 240-day period before making a decision. A cluster of ETF applications, including those from BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, was initially anticipated to be decided upon in mid-October.
To prepare for a potential federal government shutdown, the SEC has extended its decision deadlines for spot bitcoin ETF applications submitted by Ark 21Shares and Global X, and further delays may occur by the end of the week.
In late August, a federal appeals court mandated that the U.S. SEC reevaluate its rejection of Grayscale Investments’ attempt to convert its Grayscale Bitcoin Trust into an ETF. The court cited discrepancies in the SEC’s approval of similar bitcoin products as the reason for its decision.
