The U.S. Securities and Exchange Commission (SEC) has initiated additional proceedings regarding three proposed crypto exchange-traded funds (ETFs), effectively delaying their approval. The proceedings concern NYSE Arca’s proposed rule change for Grayscale’s Ethereum Futures Trust ETF and Nasdaq’s proposal for Hashdex’s spot Ethereum ETF. The SEC has raised concerns over market manipulation and has asked about Ethereum’s unique features and their potential for fraud and manipulation. The agency also inquired about the ability of each ETF proposal to reduce these risks.
Regarding Grayscale’s application, the SEC specifically asked whether the proposed fund should gain approval if and when several competing funds begin trading. On the Hashdex proposal, the SEC asked several questions about the Ethereum spot market, including liquidity, futures-based spot pricing, and correlations between spot and CME Ethereum futures markets.
In addition to these proceedings, the SEC has published a notice soliciting comments on a proposed rule change from Cboe BZX concerning a spot Bitcoin ETF from Pando Asset AG. This notice does not seek specific answers to questions like the Ethereum ETF notices.
Overall, the SEC’s actions indicate increased regulatory scrutiny on Ethereum ETFs and a delay in the approval process. Stakeholders have been given a timeframe to submit comments, and a decision on each ETF is expected to be at least 35 days away.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Hashdex, NYSE Arca, Grayscale, Cboe BZX, Pando, Nasdaq |
| Currencies | Ethereum, Bitcoin |
| Securities | None |
