The Securities and Exchange Commission (SEC) has deferred its decision on the Hashdex Nasdaq Ethereum ETF proposal until 2024. Additionally, the SEC has also postponed the attempt to convert the Hashdex Bitcoin ETF.
There is a noticeable race to launch an Ethereum Instant ETF, with BlackRock, the senior manager, recently surprising many by submitting an official application for an Ethereum Instant ETF with the regulatory authority.
This development comes after BlackRock filed for a Bitcoin exchange-traded fund (ETF) in June. It indicates that giant investment firms like BlackRock are increasingly comfortable with the second-largest cryptocurrency despite its regulatory ambiguity. In different instances, Gary Gensler, the chair of the SEC, has declined to definitively state whether Ethereum is considered a security under U.S. law.
For example, during a congressional hearing in April, Gensler did not provide a direct answer when asked about the status of Ethereum as a security. In previous statements, Gensler suggested that Ethereum may be considered a security, especially after Ethereum transitioned to a proof-of-stake mechanism.
Expectations of SEC Approval in 2024:
James Sevart, an analyst at Bloomberg Intelligence, has suggested that Ethereum has effectively reached commodity status, though the SEC has not officially recognized it as such. Despite the absence of explicit recognition from Gensler and the SEC, Sevart argues that Ethereum’s competitor deserves the same spotlight as the king of cryptocurrencies.
Along with other industry experts, it is anticipated that the SEC is likely to treat Ethereum like Bitcoin and approve Ethereum exchange-traded funds in 2024. This optimistic prediction is based on the regulatory body’s previous actions and the increasing recognition of Ethereum in the financial world.
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