Delay in SEC Decisions
The United States Securities and Exchange Commission (SEC) has once again decided to take a leisurely stroll instead of sprinting down the decision-making track. On September 27, they announced a delay regarding spot Ethereum (ETH) exchange-traded fund (ETF) applications filed by ARK 21Shares and VanEck, shuffling their deadlines to December 25 and December 26, respectively. Perhaps they think the Christmas spirit will spark some epiphanies on ETFs!
The Reason for the Delay
According to the SEC, this extended timeline will offer them the necessary space to carefully analyze the proposed rule changes associated with these ETFs. The commission revealed it hadn’t received any public comments on either application, which might explain their apparent uncertainty. “The Commission finds it appropriate to designate a longer period… so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC stated, probably while twirling their pens pensively.
What’s Happening in the Market
This lag in decisions coincides with a flurry of activity surrounding ETH ETFs across the market. On the very same day, the Nasdaq Stock Market filed a proposed rule change for a mixed ETH ETF that combines spot Ether and futures contracts. Talk about mixed signals, right? In addition, proposed rule changes were also filed with the New York Stock Exchange for various Bitcoin futures ETFs on the same day, suggesting that the excitement around crypto ETFs is far from dormant.
The Bigger Picture
On September 26, the SEC extended the deadlines for determining the fate of spot Bitcoin ETF applications from ARK 21Shares and Global X, moving final decisions to January. It seems like folks are reeling in December with a full basket of ETF decisions!
What’s Next for ETFs?
It’s worth noting that the SEC has yet to approve a spot crypto ETF in the U.S., although they have allowed crypto-linked futures ETFs and a leveraged Bitcoin futures ETF to strut their stuff on the market. Meanwhile, many firms, such as BlackRock, WisdomTree, and Fidelity, are all set with their spot crypto ETF applications, with decision deadlines looming imminently in October. So, buckle up! The countdown is about to get serious.
Final Thoughts
In the grand scheme, as the SEC plays its waiting game, crypto enthusiasts like Cathie Wood speculate about a simultaneous approval strategy, perhaps to keep the playing field level. If only we could get them to make a decision in under 100 years!
