The SEC Extends Evaluation Period for Grayscale’s Ethereum ETF
The US Securities and Exchange Commission (SEC) has announced that it is prolonging its assessment of Grayscale’s Ethereum ETF until January 25. This decision comes after NYSE Arca, Inc. submitted a proposal on October 10, seeking a rule change to enable the listing and trading of Grayscale Ethereum Trust shares. Specifically, the proposed rule change aims to align with NYSE Arca Rule 8.201-E, which caters to Commodity-Based Trust Shares. To ensure a comprehensive regulatory process, a comment period was initiated to gather input from the public and industry experts.
Grayscale’s Lengthy Quest for ETF Approval
Grayscale has been striving for regulatory approval for a spot Exchange-Traded Fund (ETF) since 2017. If successful, this approval would open up cryptocurrency investment opportunities to a wider audience through traditional financial markets. Additionally, the SEC has also extended the evaluation period for the Hashdex Nasdaq Ethereum ETF proposal to January 1, 2024.
Hot Take: SEC Continues to Slow Down Crypto ETFs
The US Securities and Exchange Commission’s decision to extend the evaluation period for Grayscale’s Ethereum ETF and the Hashdex Nasdaq Ethereum ETF shows the regulator’s cautious stance towards cryptocurrency ETFs. Despite the increasing demand for crypto investment opportunities in traditional markets, the SEC has held back approvals for years. While the extension provides more time for the SEC to thoroughly evaluate the proposals, it also delays the potential accessibility of these investment products. As the crypto industry continues to evolve, the SEC’s approach to crypto ETFs will play a pivotal role in shaping the future of digital asset investment.
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