The SEC Delays Decision on Grayscale’s Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has announced a 45-day delay in its decision regarding Grayscale Investments’ spot Ethereum ETF. The new decision date is set for January 25, 2024. The SEC stated that it requires more time to thoroughly consider the proposed rule change and the associated concerns.
Analyst Views the Delay as Normal
According to Bloomberg Intelligence analyst James Seyffart, this delay is not unexpected and is considered a regular occurrence in such cases.
Prior Meetings with Grayscale Investments
In November, representatives from the SEC’s trading and markets department met with Grayscale Investments to discuss the conversion of their publicly traded Bitcoin Trust into a Bitcoin spot ETF. David Shillman, the deputy director of the SEC’s Division of Trading and Markets, attended the meeting.
Other Postponements by the SEC
In addition to delaying its decision on Grayscale’s Ethereum ETF, the SEC also postponed its ruling on Hashdex’s Bitcoin spot ETF application until January 1, 2024. Furthermore, the Commission delayed its decision on Grayscale’s application for an ETF based on Ethereum futures.
Hot Take: SEC Takes Time to Evaluate
The SEC’s decision to extend the review period for Grayscale Investments’ Ethereum ETF is not unexpected. It allows them more time to carefully consider the proposal and address any concerns raised. This delay aligns with previous postponements by the SEC regarding cryptocurrency-based ETFs. Ultimately, this decision demonstrates that regulatory authorities are taking their time to evaluate these investment products thoroughly before making any rulings.
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