SEC Urges Approval of Hashdex, ARK 21Shares Ether ETFs Amid Dimming Hopes

The United States Securities and Exchange Commission has pushed back its decision on the proposed spot Ether (ETH) exchange-traded funds (ETFs) from Hashdex and ARK 21Shares.

The SEC’s postponement on Tuesday, March 19, came just days before the agency’s “third deadline” for the ETF applications, which are set to face a final decision in late May.

May 24 is the final decision date for ARK 21Shares, while Hashdex’s application will face the regulator’s ultimatum on or before May 30.

Analysts have become increasingly pessimistic about the chances of approval for the eight Ether ETFs currently proposed by BlackRock, Grayscale, Fidelity, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton.

In a March 19 X post, Bloomberg ETF analyst James Seyffart expressed his growing concern due to a lack of communication between the SEC and the issuers.

“My previously optimistic outlook for ETH ETFs has shifted in recent months,” Seyffart wrote.

Last week, fellow Bloomberg ETF analyst Eric Balchunas reduced the odds of Ether ETF approval from 50% to 35%.

Balchunas told Cointelegraph that the ETF process for Ether feels like the “opposite” of his experience with the spot Bitcoin (BTC) ETF race, citing the SEC’s silence on the matter.

Public sentiment also appears to have declined, with the odds of Ether ETF approval by the end of May on Polymarket dropping to 32%, down from 77% in January.

Polymarket, a decentralized betting platform, has seen around $2.2 million in bets placed on the outcome of the Ether ETFs.

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In the world of cryptocurrency, there is always something new happening. One of the latest developments is the consideration by Grayscale, a major asset manager, to add staking to their spot Ether ETF application.

In a statement to investors, Grayscale outlined four proposals, including the option to stake Ether held by their Ethereum Trust. This would allow the trust to participate in a proof-of-stake validation protocol and receive compensation for the benefit of ETHE shareholders.

Grayscale believes that staking Ethereum held by the trust would help to counteract inflationary pressures caused by the proof-of-stake protocol and maintain parity with other investment products that offer staking. However, these proposals must be voted on and receive consent from over 50% of shares to be implemented.

If approved, Grayscale would join other companies such as ARK 21Shares, Franklin Templeton, and Fidelity in adding staking to their spot ETF applications for Ether. This is just one example of the latest news in the crypto world, which also includes developments such as the launch of Dencun and the ongoing debate over the identity of Satoshi Nakamoto.