The seemingly unending march towards full-fledged integration of cryptocurrencies with traditional finance continues, but not without hurdles. A recent example of this is the United States Securities and Exchange Commission (SEC) delaying the decision on spot Ether ETF applications submitted by ARK 21Shares and VanEck.
The applications looking to establish spot Ether exchange-traded funds were pushed, without any clear reason, to Dec. 25 and Dec. 26, respectively. According to statements released by the SEC, the commission had yet to receive any public comments on either proposal. But the question is, why the postponement? Insight can be found in the SEC’s words – they argue the longer timeframe allows adequate time for in-depth consideration of the proposed changes.
But wait, this raises an important counter argument – is the delay reflective of the SEC’s cautious nature in matters concerning cryptocurrencies, or does it inherently stifle the growth and acceptance of digital assets into the mainstream financial industry?
On the same day, a mixed ETF was proposed by the Nasdaq Stock Market, also awaiting approval from the SEC, an event that adds to the growing list of corporations eagerly awaiting regulatory clarity. Furthermore, similar proposed rule changes by New York Stock Exchange Arca and the Cboe BZX Exchange for other Ether and Bitcoin ETFs respectively also remain in the queue.
The SEC’s hesitant approach can be seen as safeguarding investor interests by ensuring only thoroughly vetted and compliant regulations pass. However, critics argue that this overcautious approach often delays progress, potentially obstructing the growth trajectory of the blockchain industry.
Adding to this, Cathie Wood founder of ARK Investment Management has voiced concerns that the SEC’s expected move could create a scenario where multiple listings happen all at once to avoid giving any single company an unearned market advantage.
The stark reality is that, to date, the SEC has not sanctioned a spot crypto ETF, although it did permit the listing of crypto-linked futures ETFs, and also a leveraged Bitcoin futures ETF. It is anyone’s guess how this will play out in the future. But for now, there is a growing demand to bridge the gap between the traditional financial structures and the innovative blockchain industry, awaiting regulatory clarity with baited breath. The ball is in SEC’s court.
Source: Cointelegraph
