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SEC Postpones Decision on Ethereum ETFs, Seeks Public Opinion

U.S. SEC delays verdict on Ethereum ETFs, including Grayscale and Hashdex, inviting public comments within 21 days.

Claudia Fischer

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The U.S. Securities and Exchange Commission (SEC) has recently extended its review period for several Ethereum-focused exchange-traded funds (ETFs), including those proposed by industry leaders like Hashdex, Nasdaq and Grayscale. This move signals a cautious approach by the regulatory body as it seeks comprehensive public feedback on these financial products. U.S. SEC delays verdict on Ethereum ETFs, including Grayscale and Hashdex, inviting public comments within 21 days.

Deliberation on Diverse Ethereum Products

Notably, while Ethereum futures-based ETFs have received the SEC’s nod in the past, the commission remains hesitant about approving ETFs dealing directly with spot ether or those blending various investment forms. The latest developments involve the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust, both under investigation.

Spotlight on Industry Giants

Among the affected, Grayscale stands out as a figure in the crypto realm, facing delays for its Ethereum Futures Trust ETF. This pause comes amid the SEC’s concerns over potential risks, such as fraud and manipulation, especially in light of Ethereum’s shift to a proof-of-stake consensus mechanism.

Also Read: Grayscale Applies for an Exclusive ETH Futures ETF, Says Official

Similarly, Hashdex’s ETF proposition, which aims to incorporate both spot ether and futures contracts, is experiencing a hold-up. Managed by Toroso Investments and recognized as a commodity pool operator, Hashdex’s ETF is pending a final decision from the commission.

Call for Public Participation

The SEC is inviting comments from the public on these proposed ETFs. This includes products from VanEck, Grayscale, ARK 21Shares, and Hashdex. Stakeholders and interested individuals have a 21-day window to submit their opinions, playing a vital role in shaping the future of these investment vehicles.

Impact of Regulatory Decisions

The SEC’s approach reflects a careful examination of the evolving cryptocurrency landscape. As the industry awaits the verdict on these Ethereum-focused ETFs, the decisions will influence the direction of crypto investment products in the American market. This development is not just for the firms involved but also for investors and industry observers, marking a critical juncture in the regulatory treatment of digital assets.

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