SEC Extends Deadline for Spot Ethereum ETF Decision
The United States Securities and Exchange Commission (SEC) has announced an extension of the deadline for its decision on approving or disapproving a spot Ethereum exchange-traded fund (ETF) filed by Grayscale Investments. The new deadline is January 25, 2024, which is a 45-day extension from the original deadline of December 11, 2023.
Grayscale’s Application for Spot Ethereum ETF
In early October, Grayscale submitted an application to the SEC to convert its Grayscale Ethereum Trust (ETHE) into a spot Ethereum ETF. This made Grayscale the fifth firm to file for such an ETF, following VanEck, HashDex, Galaxy/Invesco, and Ark Invest/21Shares.
NYSE Arca’s Proposed Rule Change
After Grayscale’s application, the New York Stock Exchange (NYSE) Arca submitted a proposed rule change to the SEC, seeking approval to list and trade shares of the crypto product on its platform. The SEC then opened the proposed rule change for public comment in late October.
SEC Extends Decision Period
With the public comment period concluded, the SEC has decided to extend the time period for considering the proposed rule change. The Commission stated that it needs more time to thoroughly evaluate the proposal and the issues raised. The new deadline for the SEC’s decision is January 25.
Grayscale Updates GBTC Framework
While awaiting the SEC’s decision on its spot Ethereum ETF, Grayscale has made updates to its framework for the Grayscale Bitcoin Trust (GBTC). These updates aim to ensure fair competition with other asset managers in the race to launch a spot Bitcoin ETF, such as BlackRock, Ark Invest, Fidelity, and VanEck.
Hot Take: SEC Delays Spot Ethereum ETF Decision
The SEC’s decision to extend the deadline for the spot Ethereum ETF is a sign of the regulatory complexities surrounding cryptocurrency ETFs. While Grayscale and other firms eagerly await approval for their ETFs, it remains uncertain when the first spot Bitcoin or Ethereum ETF will be launched. The crypto community continues to watch closely for any updates from the SEC and remains hopeful for a positive outcome in the near future.
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