SEC Requests Further Comment on Ethereum ETF Approval
Commentary by Rachael Hashmall
The SEC requested comment on a proposed rule change by the Nasdaq Stock Market that would allow the listing of exchange-traded funds based on Ethereum.
The Notice follows the delay by the SEC of a decision on the proposed rule change. The agency found it "appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein."
The SEC approved the listing and trading of spot Bitcoin ETF shares "on an accelerated basis" in January after a court finding that the SEC's prior refusal to allow listing was "arbitrary and capricious." (See related coverage.)
Commentary
Many in the industry believe the chances of the SEC greenlighting a spot ETH ETF in May is slim, although issuers continue to update applications. The SEC appears significantly less enthusiastic about pursuing a spot ETH ETF compared to the BTC ETF process. This could stem from the SEC's recent skepticism regarding ETH's classification as a non-security.
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The SEC delayed its decision on a proposed rule change by Nasdaq that would allow the listing of exchange-traded funds based on Ethereum.
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The SEC approved the listing and trading of spot bitcoin exchange-traded product shares "on an accelerated basis."