SEC delays decision on VanEck Ethereum ETF

The SEC has again postponed its decision on an ETH ETF, with the VanEck Ethereum ETF receiving a delayed deadline.

In a recent filing, the SEC indicated that it would extend the decision deadline to May 23 and has invited public comments on the matter. This highlights the agency’s cautious approach towards crypto.

“The Commission finds that it is 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, as modified by Amendment No. 1, and the issues raised therein,” the SEC stated in the filing.

The postponement follows closely on the heels of similar delays for the Hashdex Nasdaq Ethereum ETF and the ARK 21Shares Ethereum ETF, signaling a pattern of hesitation by the regulatory body in approving crypto-based ETFs.

The anticipation surrounding a spot Ethereum ETF decision has been a topic of significant interest, mainly as major firms like Fidelity and BlackRock have submitted applications for such products, which have also been delayed.

However, optimism has waned recently, with Bloomberg ETF analyst Eric Balchunas adjusting his forecast for the likelihood of approval by May from approximately 70% to 35%.

The SEC’s series of postponements comes amid increased scrutiny of the crypto space. Notably, the Ethereum Foundation disclosed receiving a voluntary and confidential inquiry from an unspecified state authority.