In a recent development reported by The Block, the U.S. Securities and Exchange Commission (SEC) has once again extended its deliberation on the approval of two Ethereum-focused exchange-traded funds (ETFs): the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures Trust. The SEC has initiated proceedings for both applications, prompting a call for public input on whether these ETFs, designed to focus on Ethereum, should be granted permission to be listed.
Despite previously approving an ether futures-based ETF, the SEC has not yet granted approval for a spot ether or mixed fund. October marked the simultaneous approval of nine futures-based products, marking their debut in the market. The cryptocurrency industry is keenly observing to see if the SEC will grant approval for spot bitcoin ETFs, especially since various firms have engaged with the agency's staff in discussions over the past month to address specific details.
The decision on the Hashdex Nasdaq Ethereum ETF, which seeks to hold both spot ether and futures contracts under the management of Toroso Investments, had previously faced a delay by the SEC last month. Toroso Investments is registered as a commodity pool operator with the Commodity Futures Trading Commission and is affiliated with the National Futures Association.
Similarly, the SEC has deferred the decision on Grayscale's proposed Ethereum futures ETF. The filing made on Monday includes detailed questions for potential commentators, addressing concerns about whether Ethereum's proof-of-stake consensus might raise issues related to fraud and manipulation. Interested parties have approximately 21 days from now to submit comments for both Grayscale and Hashdex.
