SEC Delays VanEck Ether Spot ETF Application Again Following the footsteps of Arca, Hashdex, the U.S. Securities and Exchange Commission (SEC) has once again delayed the application for VanEck’s Ether spot ETF. In response to this news, the discount on Grayscale’s Ether Trust Fund (ETHE), which also applied for transformation into an ETF, has widened to 20%.
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SEC Delays VanEck Ether Spot ETF
Discount on Grayscale ETHE Widens to 20%
The U.S. Securities and Exchange Commission (SEC) has once again delayed the application for VanEck’s Ether spot ETF. The SEC states that it needs to solicit public opinion and will make a decision on or before May 23, 2024.
Just the day before, the SEC also delayed the Arca and Hashdex Ether spot ETFs. As usual, the SEC cited the appropriateness of the delay in order to give itself sufficient time to consider proposed rule changes and address the issues raised.
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Bloomberg ETF analyst James Seyffart has a more pessimistic view on the likelihood of an approved Ether ETF. He points out that the SEC has not even contacted the issuer regarding issuance details, which is in complete contrast to last year’s Bitcoin ETF. Therefore, they have lowered the probability of approval by the end of May to 30%.
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Bloomberg Analyst: Probability of Ether Spot ETF Approval by May Reduced to 30%
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In addition, Fortune reported last night that the SEC is conducting an in-depth investigation into Ether and speculates that this is not just a routine check. The SEC may be considering classifying Ether as a security, which could have a significant impact on the dream of issuing an Ether spot ETF.
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Fortune: SEC Intensively Examining Ether, Attempting to Classify ETH as a Security
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Following the news of another delay in the approval of the Ether spot ETF, the discount on Grayscale’s Ether Trust Fund (ETHE), which also applied for transformation into an ETF, has once again widened to 20%.
Image Source: YCharts
Previously, the discount on Grayscale’s Bitcoin Trust Fund (GBTC) had reached as high as 44%. However, investors who bet on the approval of its ETF last year not only benefited from the rise in Bitcoin, but also profited from the 40% price difference when the discount narrowed. With the widening of the discount on ETHE once again, could this be another investment opportunity?
(This article is not investment advice, please DYOR)
Image Source: YCharts
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