SEC Postpones Ruling on Ethereum ETFs, Opens Door for Public Input

The U.S. Securities and Exchange Commission (SEC) has postponed its decision deadline for approving two proposed exchange-traded funds (ETFs) based on Ethereum's native cryptocurrency, ether. The ETFs under review are the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF.

Notably, the SEC stated that along with extending its own review timeline, it would also allow for public commentary to help guide its final ruling. This represents the SEC embracing a more collaborative approach in evaluating the implications of ether ETFs.

The announcement aligns with the SEC's recent cautious stance on crypto ETF applications, as underscored by delays for proposed funds from VanEck, ARK 21Shares, Invesco Galaxy, and others spanning bitcoin and ether. Sources highlight this prudence stems from remaining legal and policy issues around crypto assets.

Industry analysts like James Seyffart speculate the early transparency around the review extension may deliberately manage applicant expectations. Especially as asset managers have actively met with the SEC in recent weeks to discuss specific ETF structuring to assuage regulatory concerns.

Overall, the SEC delay opens the door wider for public input to potentially shape an ETF product that balances innovation, investor protection and market stability. More broadly, the deliberative approach and demand for comment underscore the SEC prioritizing comprehensive evaluation for new crypto fund vehicles.