SEC Delays Decision on Grayscale’s Spot Ether ETF Application
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on whether to approve or reject Grayscale’s spot Ether ETF application. The deadline has been pushed to 2024, giving the SEC more time to review the proposed rule change.
SEC Pushes Decision
The SEC has designated a longer period to consider the proposed rule change that would enable the NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. This decision comes after an appellate court ordered the commission to review Grayscale’s Bitcoin ETF offering. The SEC’s filing stated that it needs sufficient time to examine the proposal and the issues raised.
More Delays
The SEC has also delayed a decision on the proposed Hashdex Nasdaq Ethereum ETF. Other major institutions like BlackRock are also waiting for regulatory approval to launch their own spot Ether ETFs. Grayscale filed a Form 19b-4 in October to convert its Grayscale Ethereum Trust into a spot Ether ETF. The trust is currently the largest ETH investment vehicle globally, with nearly $5 billion in assets under management.
SEC Yet To Approve Spot BTC Or ETH ETF
Grayscale and BlackRock are hoping for SEC approval for the first spot Bitcoin ETF in the US. While the regulator has approved investment vehicles tied to crypto futures, it has not given the green light for spot BTC or ETH exchange-traded funds. Analysts speculate that if the SEC approves a spot Bitcoin or Ethereum ETF, it could lead to simultaneous approvals of applications from multiple entities. The SEC currently has applications from several firms, including Hashdex, BlackRock, ARK 21Shares, VanEck, Fidelity, and Invesco Galaxy.
Hot Take: SEC Delays Decision on Grayscale’s Spot Ether ETF Application
The SEC’s decision to postpone the ruling on Grayscale’s spot Ether ETF application is not surprising. This delay gives the SEC more time to carefully consider the proposed rule change and the potential impact on the market. While Grayscale and other institutions patiently await the approval of spot BTC or ETH ETFs, the SEC has the opportunity to evaluate multiple applications and make a comprehensive decision. The future of cryptocurrency ETFs in the US remains uncertain, but as regulatory frameworks evolve, there is hope for increased investment opportunities in the digital asset space.
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