The United States Securities and Exchange Commission (SEC) has extended the timeframe for approving or disapproving Ethereum ETF proposals from various entities, including VanEck and ARK. The decision on Galaxy Invesco’s application has been postponed to July 5, along with other major players in the industry like BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares.
The SEC’s decision to delay the approval process for spot Ethereum ETFs by an additional 60 days has raised questions among industry experts. The commission’s move to take more time than it did for the Bitcoin ETF approval in January 2024 has led to speculation about potential reasons for denial.
Possible factors such as lack of public engagement, technical issues, and an ongoing legal dispute involving key Ethereum supporter Consensys could contribute to the SEC’s anticipated denial of these ETFs. Recent reports suggest that the SEC may reject applications from VanEck and ARK in the near future, prompting varied reactions from industry figures like BlackRock’s Larry Fink and Coinbase’s Paul Grewal.
Despite the uncertainties surrounding Ethereum ETF approvals, industry analysts like James Seyffart and Eric Balchunas have shared their perspectives on the matter. Seyffart remains cautious about potential denials, while Balchunas has adjusted his outlook on spot Ethereum ETFs.
A spot Ethereum ETF offers investors a direct avenue to invest in the digital asset without the need to own or store it. Notably, Hong Kong has emerged as the first jurisdiction to approve an Ethereum ETF, signaling growing interest and acceptance of digital asset investment vehicles worldwide.
