SEC Extends Deadline for VanEck’s Ether ETF Application

SEC Delays Decision on VanEck’s Spot Ether ETF

The Securities and Exchange Commission (SEC) of the United States has postponed its potential decision on an application for a spot Ether (ETH) exchange-traded fund (ETF) from VanEck, an asset manager.

On March 20, the SEC announced that it had extended the time period for approval or disapproval of the Cboe BZX Exchange’s proposal to list and trade shares of the VanEck Ethereum ETF. The commission now has until May 23 to make a final decision on the investment vehicle.

The SEC stated that it needed more time to consider the proposed rule change, thus designating a longer period for its decision.

This delay follows the SEC’s previous extensions for approving spot Ether ETFs from Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart predicted that the current round of Ether ETF applications with deadlines in May 2024 would ultimately be rejected.

SEC Investigating Ethereum Foundation Ties in Efforts to Classify ETH as Security

Recent reports suggest that the Securities and Exchange Commission (SEC) is conducting an investigation into firms allegedly linked to the Ethereum Foundation in an attempt to classify Ether as a security. The outcome of this investigation could have implications for the approval of ETH exchange-traded funds (ETFs).

The SEC has already begun approving investment vehicles tied to Ether futures, indicating a potential acceptance of the cryptocurrency as a commodity. The delay on VanEck’s ETF application has also opened the proposal up for public comment.

On January 10, the SEC allowed U.S. exchanges to list and trade shares of spot Bitcoin ETFs, with the majority of commissioners approving the rule changes. However, two U.S. Senators, Jack Reed and Laphonza Butler, have urged SEC Chair Gary Gensler to reject Ether ETF applications, citing potential risks for retail investors.