In the ever-evolving world of cryptocurrency, all eyes are on Ethereum Spot ETFs. Recently, the US Securities and Exchange Commission (SEC) once again delayed its decision regarding the ETF proposals from Hashdex and ARK 21Shares, causing concerns about the future of these financial products.
A Decision Awaited with Impatience
The SEC’s decision to postpone the verdict comes just before the agency’s ‘third deadline.’ The requests for Hashdex and ARK 21Shares Ethereum Spot ETFs will now have a final decision set for late May, on the 24th and 30th respectively. This delay adds an additional layer of uncertainty to the market, which is already rife with speculation and anticipation from experts.
Analysts’ Perspectives Raise Concerns
The initial optimism regarding the approval of Ethereum ETFs has significantly cooled. Renowned analysts such as James Seyffart from Bloomberg have expressed growing concern over the lack of communication between the SEC and the issuers.
This shift in perspectives is notable, with Eric Balchunas from Bloomberg lowering the approval probabilities from 50% to 35%. These changes reflect frustration towards the SEC’s radio silence, which starkly contrasts with the previous rush to approve Bitcoin Spot ETFs.
The shifting odds on Polymarket, a decentralized betting platform, demonstrate this decline in confidence, with the chances of Ethereum ETF approval by late May falling to 32% from 77% in January. This dwindling public optimism is accompanied by a betting volume of $2.2 million on the outcome of Ethereum ETFs.
Grayscale Explores ETH Staking
In this uncertain context, Grayscale is seeking to innovate by considering the addition of staking to its Ethereum Spot ETF. By seeking consent from investors of its Grayscale Ethereum Trust, the company is exploring the possibility of staking the Ether held by the fund.
This initiative aims to mitigate inflationary pressures resulting from Ethereum’s proof-of-stake protocol while maintaining parity with other similar investment products that offer staking. If approved, this proposal would allow Grayscale to join other issuers such as ARK 21Shares, Franklin Templeton, and Fidelity, who have recently integrated Ether staking into their Spot ETF applications.
