SEC postpones next Ether ETF decision

The US Securities and Exchange Commission (SEC) is postponing its decision on another spot Ethereum ETF. This time the postponement concerns VanEck's application. In a document filed Wednesday, the SEC said it is taking until May 23, 2024. It also asked for public comment on the decision.

The announcement came after the SEC previously delayed deadlines for approval of Ether spot ETFs from Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart therefore speculated yesterday that the current round of Ether ETF applications with deadlines through May 2024 "will ultimately be rejected."

Two Democratic U.S. senators have already warned SEC chief Gary Gensler in a letter against allowing further exchange-traded crypto funds. They substantiated their opposition with "enormous risks" for retail investors.

However, the delay does not yet mean rejection. The SEC must make a final decision on the first Ether ETF application on May 23. VanEck's ruling could set the tone for all ETF applications.

The SEC has until June 18 to make a final decision on Grayscale's application, while Invesco's Ether ETF applications must wait until July 5, Fidelity until August 3 and BlackRock until August 7.