SEC Delays Decision on Hashdex Nasdaq and ARK 21Shares Ethereum ETFs

The U.S. Securities and Exchange Commission (SEC) has decided to extend the timeframe for evaluating the approval of the Hashdex Nasdaq Ethereum ETF until May 30, 2024, as announced on Tuesday. This ETF proposal includes a combination of spot ether and futures contracts within its portfolio. The SEC cited the need for additional time to thoroughly assess the proposed rule change and address any concerns raised.

Originally submitted by the Nasdaq stock exchange in September, with Toroso Investments managing the fund, the application for the Hashdex Nasdaq Ethereum ETF faces yet another delay. Toroso Investments is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association. This delay follows a previous postponement after the SEC solicited public comments in December.

Additionally, the SEC announced a similar extension for the decision on the ARK 21Shares Ethereum ETF, now scheduled for May 24, 2024. This ETF aims to mirror the performance of ether directly. The SEC is also inviting public comments on this application, maintaining a cautious stance towards cryptocurrency-based financial products.

These delays come amidst waning optimism for the approval of spot Ethereum ETFs, with industry analysts adjusting their expectations accordingly. Bloomberg ETF analyst Eric Balchunas revised down his estimate for the likelihood of a spot Ethereum ETF approval by May from 70% to 30%. His colleague, James Seyffart, noted that such delays were anticipated, reflecting a prudent approach towards Ethereum ETF approvals in the current evaluation cycle.