The United States Securities and Exchange Commission (SEC) has decided to delay its ruling on the proposed spot Ether exchange-traded funds (ETFs) by Hashdex and ARK 21Shares.
The United States Securities and Exchange Commission (SEC) has decided to delay its ruling on the proposed spot Ether exchange-traded funds (ETFs) by Hashdex and ARK 21Shares. The SEC's announcement, which came on March 19, revealed that the final decision for both Ether ETF applications will be made in late May.
Market analysts are expressing doubt about the approval prospects for the eight Ether ETFs currently under consideration. Notably, analysts such as James Seyffart, an ETF analyst at Bloomberg, have become increasingly skeptical due to the lack of communication between the SEC and the issuers. Seyffart admitted a shift in his outlook and now believes that the ETFs will likely be denied on May 23.
Eric Balchunas, another ETF analyst at Bloomberg, has also revised his Ether ETF approval odds from 50% to 35%. Balchunas noted that the SEC's handling of the Ether ETFs contrasts sharply with its approach to Bitcoin ETFs, as the agency has remained largely silent throughout the process.
While the ETF approval hangs in the balance, Grayscale, the asset management firm, has joined the ranks of issuers considering the inclusion of staking in its spot Ether ETF application. In a statement sent to Grayscale Ethereum Trust investors, the company outlined several proposals, including the option to stake Ether held by the trust. This move aims to counter inflationary pressures resulting from Ethereum's proof-of-stake protocol and align with other investment products offering similar staking opportunities. The proposals will be subject to a vote, requiring consent from over 50% of shares.
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