The SEC Delays Decision on Grayscale Ethereum Futures Trust’s Ethereum ETF Application
The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding the approval of the Grayscale Ethereum Futures Trust’s application for an Ethereum Exchange-Traded Fund (ETF). The new deadline for the decision is set for May 30, according to a document filed by the SEC on Friday.
SEC Requests More Time for Consideration
Under the Securities Exchange Act of 1934, the SEC has a timeframe of 180 days or six months from the publication of the proposed rule change notice to make a decision. Grayscale submitted its application in September, and the SEC postponed its decision in November. In its recent filing, the SEC stated that it needs more time to consider the proposed rule change and the issues raised therein.
Bloomberg ETF analyst James Seyffart commented on the anticipated delay in a recent post. He suggested that Grayscale is strategically maneuvering to secure eventual approval for a spot Ethereum ETF from the SEC. Seyffart emphasized the deliberate nature of Grayscale’s approach.
The agency has previously delayed its decision-making timeline for Grayscale’s ether futures ETF on multiple occasions. However, it is worth noting that the SEC had previously approved a set of ether futures ETFs in October 2023, including offerings from ProShares, VanEck, and Bitwise.
Ethereum (ETH) Price Faces Pressure
In response to ongoing security allegations raised by the SEC, Ethereum joined forces with Solana. Meanwhile, Ethereum’s native cryptocurrency, ETH, has experienced a significant retracement of approximately 18% since reaching its peak on March 11th. Currently, ETH is trading 5.16% down at $3,326 with a market cap of $400 billion.
Additionally, whale activity in the Ethereum market has surged to its highest levels in 2024, indicating increased interest and activity among large-scale investors.
Analysts suggest monitoring the 30-day average returns of ETH wallets, which currently indicate a favorable buying opportunity. The Relative Strength Index (RSI) for Ethereum has declined to 28.5, its lowest level since experiencing a price bottom in late January.
Hot Take: SEC Delays Ethereum ETF Decision
The SEC’s decision to delay the approval of Grayscale Ethereum Futures Trust’s Ethereum ETF application has generated anticipation and speculation in the crypto community. While Grayscale is strategically navigating the regulatory landscape, the delay raises questions about the future of an Ethereum ETF and its potential impact on the price of ETH. As investors wait for the SEC’s final decision, they will continue to monitor market trends and developments within the Ethereum ecosystem.
By
By
By
By