The US Securities and Exchange Commission (SEC) made significant decisions regarding cryptocurrency exchange-traded funds (ETFs) on June 10. The agency acknowledged a proposed rule change for the ProShares Ethereum ETF but did not officially approve it. The SEC must make a decision on the proposal within 45 days, with a possible extension of up to 90 days. This could potentially delay the launch of ProShares’ ETF compared to its competitors.
Despite the uncertainty surrounding ProShares’ launch date, NYSE Arca plans to list and trade shares of the fund. In another development, the SEC approved Ark Invest’s exit from the 21 Shares’ ETF application. This means that 21Shares’ fund can proceed without Ark Invest’s involvement, as the agency waived its usual 30-day operative delay. The decision was made quickly as it was deemed not to significantly impact investor protection or competition.
Ark Invest and 21Shares announced their decision to part ways on the fund on May 31, with Ark Invest citing a decision not to move forward with an Ethereum ETF. However, it remains involved in the Bitcoin ETF ARKB. While the SEC approved the 19b-4 rule changes for eight spot Ethereum ETFs on May 23, the S-1 registration statements have not been approved yet, delaying the launch of these products for trading. There is no definitive launch date for the spot Ethereum ETFs as of now.
Bloomberg ETF analyst James Seyffart speculated on the timing of ProShares’ ETF launch, suggesting that it may not coincide with the launch of other competing ETFs. Meanwhile, industry experts like Erich Balchunas predict that the spot Ethereum ETFs could potentially launch by the end of June or early July. On the other hand, JP Morgan anticipates that the funds may start trading by November. These developments highlight the evolving landscape of cryptocurrency ETFs and the regulatory hurdles they face before being made available to investors.
In conclusion, the SEC’s decisions regarding ProShares Ethereum ETF and Ark Invest’s exit from 21 Shares ETF are significant milestones in the cryptocurrency ETF space. While the approval process is ongoing, market analysts and experts are closely monitoring the developments to gauge the potential impact on the market. As the industry continues to evolve, stakeholders are eagerly awaiting the launch of these ETFs and the opportunities they may bring for investors interested in cryptocurrency assets.
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