The deadline for the US Securities and Exchange Commission’s (SEC) decision on the potential approval of asset manager VanEck’s exchange-traded fund (ETF) for spot Ethereum (ETH) has been extended. The VanEck Ethereum ETF will be listed and traded on the Cboe BZX Exchange. The panel will now have until May 23 to render a final decision.
This verdict comes after the SEC extended the deadline for Hashdex and ARK 21Shares’ equivalent Ether ETF submissions. These applications are due in May 2024, and Bloomberg ETF analyst James Seyffart believes they may be rejected.
The SEC appears to be investigating organizations affiliated with the Ethereum Foundation in an attempt to classify Ether as a security, raising concerns about the approval of ETFs.
In October 2023, the SEC began approving financial products related to Ether futures, implying that Ether will eventually be classified as a commodity. Due to the delays in VanEck’s application, public comments are now permitted. Senators Laphonza Butler and Jack Reed, on the other hand, have urged SEC Chair Gary Gensler to reject applications for Ether ETFs because of potential risks to ordinary investors.
