Ethereum Spot ETF Applications Delayed by the SEC
The exchange traded fund (ETF) applications for Ethereum (ETH) by asset managers ARK Invest and VanEck will have to wait longer for a response from the U.S. Securities and Exchange Commission (SEC). The decision for both applications has been delayed well before the original deadline.
In recent news, ARK Invest and VanEck, two investment firms, have submitted their ETF applications to the SEC. Specifically, on September 6th, the “19b-4 applications” were filed with the regulator. On September 26th, both applications were published in the Federal Register, marking the official start of the evaluation process in which the SEC will make a judgment.
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2. Initial Deadlines
The regulator has a total of three interim deadlines that can be postponed. A final decision must be reached before the fourth deadline. The initial deadline for both applications was set for early November. The news of the delay came unexpectedly last night.
First in line for the delay was the joint application of ARK Invest and 21Shares. The SEC stated the following:
“The Commission deems it appropriate to establish a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The second deadline is set for December 26th.
Shortly after, a similar response was issued regarding VanEck’s attempt, with the next deadline scheduled one day earlier.
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3. Bitcoin ETF Delay by ARK Invest
This is the second time within the week that asset management company ARK Invest has seen a deadline for the evaluation process of an ETF being delayed. It was announced yesterday that the SEC needed more time to consider the bitcoin spot-ETF application by ARK Invest.
The bitcoin attempt by ARK Invest is also a joint effort with Swiss Exchange Traded Product (ETP) issuer 21Shares. Similar to the current situation, the SEC decided to postpone a final decision well before the deadline. Additionally, GlobalX, a well-known ETF issuer, received the same news yesterday.