Ethereum ETF Decision Delayed by SEC
The U.S. Securities and Exchange Commission (SEC) has announced a 45-day extension for its decision on approving the proposed Ethereum spot exchange-traded fund (ETF) by Jan. 25. The SEC stated that it needs more time to consider the proposed rule change and the related issues. This delay was expected, according to Bloomberg Intelligence analyst James Seyffart. Grayscale Investments filed a Form 19b-4 in October to convert its Grayscale Ethereum Trust into a spot ETF. The trust, launched in March 2019, is currently the largest ETH investment vehicle globally, managing nearly $5 billion in assets.
Recent Delays
The SEC has also delayed its decision on Hashdex Nasdaq Ethereum ETF and other firms’ spot ether ETFs, including BlackRock’s pending approval. Grayscale and others are also awaiting approval for the first spot bitcoin ETF in the U.S. However, the SEC has yet to approve any spot ether or bitcoin funds and has postponed decisions on all applications received so far. On Monday, both BlackRock and Bitwise filed amendments to S-1 filings for their spot bitcoin proposals with the SEC.
Hot Take: SEC Continues to Prolong Decisions on Crypto ETFs
The SEC’s decision to extend the timeline for considering the Ethereum spot ETF proposal comes as no surprise. It is part of a trend where the regulator has consistently delayed decisions on various crypto-related ETF applications. This delay indicates that the SEC is taking its time to carefully evaluate these proposals and address any concerns or issues raised before making a final determination. While this may be frustrating for crypto enthusiasts eagerly awaiting ETF approvals, it highlights the cautious approach taken by regulators in ensuring investor protection and market stability in this evolving asset class.
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