SEC delays decisions about redemptions in nature, ether (ETH) ETF stack

Securities and Exchange Commission (SEC) is not yet ready to make a decision on two critical features that issuers of Spot Crypto Exchange-Traded Funds (ETFS) hope to add their products.

The regulator delayed a decision as to whether it will allow redemption within WisDomtree’s Bitcoin Fund (BTCW) and Vaneck’s Bitcoin Fund (BitB) and Ethereum Fund (ETHW) Monday. It also moved its deadline for a decision with regard to a proposal from Grayscale to allow the Staking Ithereum Trust (Ethe) and the Mini Ethereum Trust (ETH), which Asset Manager’s Exchange, Nyse Arca had requested in February.

CBOE, the exchange associated with five of the other issuers of an Ether Etf, including Fidelity, Franklin Templeton, Vaneck and Inesco/Galaxy, submitted his changed filing in March for Fidelity Ethereum Fund (FETTH) and Franklin Ethereum Etf (Ezet).

SEC has not previously allowed to enter into ether -Tfs. But with the appointment of the new SEC chairman Paul Atkins, who was confirmed by the Senate last week, things could change quickly.

Several other jurisdictions, including Hong Kong, Canada and Europe, have already green -light efforts for ETFs, but it doesn’t put much pressure on SEC, an expert said.

“Sec will take their time and move as fast or as slowly as they want,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “They don’t care what other regulators do in my experience they can learn from them, but I don’t think a regulator who approves something will get SEC to jump through braces and catch up. They go at their own pace.”

The regulator now has until June 3 to make a decision on redemptions in the wild on Bitwise’s and WisdomTree’s products and June 1 to decide Grayscales Poor proposals.

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