Spot Ethereum ETF Proposal Delayed by SEC

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Hashdex Nasdaq Ethereum ETF application until 2024. 

The delay follows closely on the heels of another recent postponement. As reported by U.Today, the SEC has also deferred Hashdex’s Bitcoin ETF conversion attempt. 

The race for a spot Ethereum ETF 

Surprisingly, there is a notable race to launch a spot Ethereum ETF. BlackRock, the top manager, has recently entered the fray by officially filing for a spot Ethereum ETF with the formidable regulator. 

The product, which is aimed at mirroring the performance of Ether's price, comes after BlackRock's June filing for a spot Bitcoin ETF. 

This development indicates that investment behemoths of the likes of BlackRock are becoming increasingly comfortable with the second-largest cryptocurrency despite its murky regulatory status.   

In various instances, SEC Chair Gensler has refrained from categorically stating whether Ether is considered a security under U.S. law.

For instance, during an April congressional hearing, Gensler did not give a direct answer when questioned about Ether's status as a security. In earlier statements, Gensler had suggested that Ether might be considered a security, especially following Ethereum's transition to a proof-of-stake consensus mechanism

Expectations for SEC approval in 2024 

James Seyffart, an analyst with Bloomberg Intelligence, believes Ethereum has effectively attained the status of a commodity, although the SEC has not formally acknowledged it as such. 

Despite the lack of explicit recognition from Gensler and his agency, Seyffart argues that the Bitcoin rival deserves the same spotlight as the crypto king. 

He, along with other industry experts, anticipates that the SEC will likely treat Ethereum more like Bitcoin and approve spot Ethereum ETFs in 2024. This upbeat prediction is based on the regulator's past actions and Ethereum's growing recognition in the financial world.