SEC Delays Decision on Grayscale’s Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to approve or deny Grayscale’s application to convert its Ethereum Trust into an exchange-traded fund (ETF). This comes after the regulatory body recently delayed decisions on BlackRock’s and Fidelity’s proposed Ethereum ETFs.
If approved, Grayscale’s Ethereum Trust shares would be listed on the New York Stock Exchange and directly redeemable for ETH. The SEC has a history of extending decision deadlines, but with the recent approval of Bitcoin ETFs, there is renewed hope for spot Ethereum ETFs.
Grayscale, a prominent crypto fund manager, previously won a legal battle against the SEC over its Bitcoin Trust. The court ruled that the regulator’s denials were unlawful. BlackRock CEO Larry Fink has expressed support for an Ethereum ETF, stating that he sees value in it.
Hot Take: SEC Continues to Hesitate on Ethereum ETFs
The SEC’s ongoing delays in approving Ethereum ETFs demonstrate the cautious approach taken by regulators towards expanding cryptocurrency investment opportunities. While Bitcoin ETFs have gained approval, the SEC seems hesitant when it comes to Ethereum. However, with influential figures like Larry Fink expressing support for an Ethereum ETF, it may only be a matter of time before such investment vehicles are given the green light. Investors eagerly await the SEC’s decision as they seek alternative ways to gain exposure to the second-largest cryptocurrency without directly owning it.
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