SEC delays decision on Ethereum ETF applications

The U.S. Securities and Exchange Commission (SEC) said it would delay a decision on applications by 21Shares and VanEck to launch a spot ETF based on Ethereum.

The regulator deemed it prudent to delay the review to allow sufficient time to study the matter.

For 21Shares, the decision date was pushed to December 26, while for VanEck it was pushed to at least December 25.

On September 6, ARK Invest and 21Shares filed with the SEC a proposal to launch a joint spot Ethereum ETF. If approved, the instrument would provide investors direct exposure to price movements of the second-largest cryptocurrency, with listing on CBOE BZX. On the same day, VanEck submitted a similar request.

Bloomberg ETF analyst Eric Balchunas noted that, while the decision on the spot Ethereum fund remains in limbo, Ether futures ETFs are highly likely (about a 90% probability) to begin rolling out in early October.

While spot remains in limbo, Ether futures ETFs highly likely (90% odds) to start rolling out in early Oct. Valkyrie first (albeit with a btc + eth ETF) followed by dozen+ straight ether futures ETFs. Gonna be a wild race albeit w/ much lower stakes than spot via @JSeyff pic.twitter.com/no8kP5DTZt

— Eric Balchunas (@EricBalchunas) September 27, 2023

“It will be a wild race, though the stakes will be much lower than for spot,” the expert said.

Later, he said the SEC asked affiliated parties to update their filings by the evening of September 29. Balchunas suggested that Ethereum futures from some firms could hit the market early next week.

In August, ARK Invest and 21Shares submitted a proposal to the Commission for two Ethereum futures ETFs.

Earlier, on September 27, the SEC delayed decisions on several applications for spot Bitcoin ETFs from ARK Invest and 21Shares until January 2024. The agency also postponed the decision on the Global X Bitcoin Trust ETF until November 2023.