The Securities and Exchange Commission (SEC) has once again announced the postponement of its decision on several Exchange Traded Investment Funds (ETFs) of Ethereum, including the Hashdex Nasdaq Ethereum ETF, until mid-2024.
The SEC has expressed concerns and delayed the approval of multiple Ether ETFs, not only those of Hashdex, but also those of entities such as VanEck, ARK Invest and 21 Shares.
The SEC’s institution of procedures adds even more uncertainty to the approval timeline.
This delay comes even though the proposal has been open for public comment since October 3, 2023.
These ETFs seek to replicate the daily changes in the reference price of Ether on the Nasdaq, offering investors exposure to price performance of ETH.
The fund’s investment strategy involves Ethereum to be used as collateral, Ether futures contracts listed on the Chicago Mercantile Exchange (CME) and cash equivalents.
This lengthy evaluation process is being seen as a significant obstacle that limits the sector’s progress and restricts investment opportunities. Additionally, it limits the investment options available to investors interested in exposure to Ethereum and its underlying technology.
Additionally, ETFs offer a more accessible way for traditional investors to participate in the cryptocurrency market, while also providing a regulated and supervised structure.
The market no longer seems to be too interested in the news coming from the US: Bitcoin and Ethereum show resilience
Despite the recent news postponing the approval of Ethereum Exchange Traded Funds (ETFs), the market has shown an unusual reaction.
Both Bitcoin (BTC) and Ethereum (ETH) have experienced a notable increase in their daily prices, with an increase of, according to data from CoinMarketCap 4.6% in ETH and a 4.7% in BTC.
The discrepancy between this positive price reaction and the SEC’s decision has caught the attention of market analysts and experts.
It is surprising to observe how, despite an announcement that implies a significant delay in the introduction of investment products focused on Ethereum, the prices of the leading cryptocurrencies have risen strongly.
This apparent decoupling among the negative news on the approval of ETFs and the increase in prices of BTC and ETH surely suggests, several interpretations.
One of them could be the resilience of the cryptocurrency market to specific news, where other factors or market forces are having an impact more significant in prices.
However, this disconnect between news events and price reaction raises questions about the logic and efficiency of the cryptocurrency market.
Investors often expect relevant news, such as the approval of ETFs, to have a direct and tangible impact on the prices of the cryptocurrencies involved.
CoinGecko reports figures of increase in exchange activities, which adds an additional nuance to the market dynamics and shows us healthy signs of an active market in the face of this news.
Price movements in the world of cryptocurrencies are often volatile and influenced by multiple factors, making the relationship between specific news and price movements be more complex and less predictable than might be anticipated.