The SEC has postponed its ruling on the Hashdex and ARK Ethereum ETFs until May. Currently, the price of Ethereum remains steady at $3,100, down 8% after the delay.
Ethereum ETF Approval Delays by the SEC Cast Doubt on Future Plans The US Securities and Exchange Commission (SEC) has once again postponed rendering a decision on the Hashdex and ARK 21Shares spot Ethereum ETFs.
Fans of Ethereum (ETH) have been watching these events closely as the deadline draws near. This decision-making window will now be open until late May, as announced on Tuesday, March 19. In particular, the SEC has designated May 24 for ARK 21Shares and May 30 for Hashdex as the dates of final judgment.
“So that it may adequately evaluate the proposed rule change and any concerns generated by it, the SEC has decided to designate a longer timeframe within which to issue an order approving or rejecting the change,” according to the SEC.
The 8% drop in Ethereum price after the SEC statement shows how vulnerable the market is to government actions. Due to the unpredictability of the Ethereum ETF licensing process, the price of Ethereum has recently remained around $3,100.
Notable submissions from industry heavyweights like Fidelity, BlackRock, and Grayscale affected by this delay include a number of Ethereum ETF ideas. Opinion has changed recently, with experts voicing doubts about the chances of ratification.
One example is the concerning silence of the SEC and Ethereum ETF issuers, as pointed out by ETF expert James Seyffart. This silence has caused people to be more negative about Ethereum ETFs, in contrast to the optimistic talks around Bitcoin ETFs.
“Since a few months ago, I used to be cautiously hopeful about ETH ETFs. In this round, we now anticipate their denial on May 23,” Seyffart wrote.
Additionally, market forecasts reveal a considerable drop in confidence, which has reduced the likelihood of acceptance. Polymarket reports that the chances of the SEC approving an Ethereum ETF in May have dropped to 24% from 75% after the SEC approved spot Bitcoin ETFs in January.
In light of these changes, Coinbase has come out as an advocate for Ethereum exchange-traded funds. Paul Grewal, chief legal officer of Coinbase, released a lengthy letter last month explaining the reasoning for authorizing an Ethereum ETF.
The CFTC, several SEC rulings, and court judgments all agree that Ethereum should be considered a commodity, which he highlighted. The purpose of this argument is to support Ethereum’s case for becoming an ETF and to show that the market is stable.
Also Read: US crypto workers earn 13% more than overseas workers March 20, 2024
Wallets