According to recent filings, the U.S. Securities and Exchange Commission (SEC) has again deferred its decision on two Ethereum-focused Exchange-Traded Funds (ETFs). The Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust are under further scrutiny as the SEC initiates in-depth proceedings to assess their potential listing.
The SEC has called for comments regarding these ETFs to gauge public sentiment and gather more information. This solicitation for public opinions is critical to the SEC’s evaluation process.
These postponements are not the first for the Hashdex and Grayscale ETFs. The SEC had previously delayed its decision on the Hashdex ETF, which seeks to integrate both spot ether and futures contracts.
Similarly, the decision on Grayscale’s Ethereum futures ETF was also put on hold, with the SEC expressing concerns about Ethereum’s proof of stake model and associated risks of fraud and manipulation.
The SEC’s cautious stance on cryptocurrency-based ETFs, particularly those involving direct holdings or mixed funds, is evident. Despite the approval of several futures-based ETFs in October, spot ether ETFs remain unapproved.
This ongoing scrutiny and the forthcoming public responses have significant implications for the cryptocurrency market, particularly in shaping the regulatory landscape for digital asset investments.
Also Read: SEC Delays Verdict on Hashdex Nasdaq Ethereum ETF to 2024
