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SEC postpones decision on Grayscale’s Spot Ethereum ETF until January 2024

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The U.S. Securities and Exchange Commission (SEC) has announced its decision on Grayscale’s application for its publicly traded < a i=5>Spot Ethereum Fund (ETF) postponed and the examination period extended with a new date in January 2024.

According to the SEC’s most recent filing, the Commission has now set a new date of January 25, 2024, replacing the previous date of January 11. Replaced December 2023. The filing states that this postponement is intended to allow for a longer period of time for a comprehensive review of the proposed rule change and related issues.

SEC postpones decision on Grayscale’s Ethereum ETF

In its statement, the SEC wrote: “The Commission believes it is appropriate to set a longer deadline for making a decision on the proposed rule change in order to allow it sufficient time to consider the proposed rule change and the issues raised therein.”

By January 25, the SEC will “either approve or reject Grayscale’s application for an Ethereum ETF or initiate proceedings to determine whether to reject it.”

The ongoing review of Crypto-based ETFs, including Ethereum and Bitcoin, by the SEC highlights the regulator’s cautious stance towards integrating these digital assets into traditional financial products. This extended deadline for Grayscale’s Ethereum ETF is a continuation of the SEC’s pattern of carefully considering the feasibility and impact of such investment opportunities in the U.S. market.

Meetings and other delayed decisions

The SEC has held meetings with major financial institutions that have filed their crypto ETFs, including Grayscale and BlackRock. A memorandum released by the SEC shows that officials from the agency’s Trading and Markets Division met with Grayscale Investments on November 29 to review the proposed conversion of Grayscale’s publicly traded Bitcoin Trust into a Bitcoin spot ETF.

In the past, the SEC has delayed its decisions on numerous ETF applications, including Global X, Franklin Templeton and Hashdex.

The Commission has not yet approved any applications for Bitcoin or Ethereum ETFs to list on a U.S. exchange. According to James Seyffart, ETF analyst at Bloomberg Intelligence, the delay is “totally normal.” Seyffart believed that once the authority decides to finally approve a crypto ETF, multiple applications can be approved at the same time.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)