The U.S. Securities and Exchange Commission (SEC) has extended its deadline to rule on applications for %Ethereum (ETH) spot exchange-traded funds (ETF) until after Christmas this year.
The SEC extended the deadline for deciding on whether to approve the spot ETF applications of Ark Invest and VanEck by 45 days until December 26.
Cathie Wood’s investment firm, Ark Invest, submitted a proposal for its Ethereum ETF product on September 6, starting the clock on a 45-day review process.
VanEck, an investment group that initially filed for a spot Ethereum ETF back in 2021, renewed its efforts to introduce such a product on the same day as Ark Invest in September.
While the SEC was expected to issue a decision within 45 days of the applications, the regulator says it needs more time to review the proposals.
Specifically, the SEC says it needs more time to solicit input from the public on the proposed crypto ETFs.
A spot product would provide investors with exposure to Ethereum by directly holding the asset. Futures ETFs differ in that they use futures contracts to speculate on the future price of Ethereum.
A further delay in the SEC’s decision regarding the Ethereum spot ETF applications could result from a shutdown of the U.S. government, which could begin as early as October 1 and would result in a suspension of operations at the SEC.
In addition to the spot ETF applications, there are currently 14 proposals pending with the SEC for Ethereum futures ETFs from firms such as Bitwise, Grayscale and VanEck .
Ethereum’s price has risen 35% this year and currently trades at $1,620 U.S.