- SEC delays Grayscale Ethereum ETF decision to May 30, 2024.
- SEC previously extended Bitcoin ETF decisions before approval.
- Analysts anticipated SEC’s cautious approach to crypto ETFs.
In a recent legal document, the United States Securities and Exchange Commission (SEC) disclosed a further postponement in determining Grayscale’s application for an Ethereum futures exchange-traded fund (ETF). The rule change application, which was submitted on September 19, 2023, aims to permit the listing and trading of shares for the Grayscale Ethereum Futures Trust ETF.
Having previously granted extensions and commenced proceedings, the SEC has now decided to prolong the evaluation period by an additional 60 days. The original deadline for a decision, which was March 31, 2024, has now been deferred to May 30, 2024.
The SEC has stated that it requires sufficient time to thoroughly review the proposed rule changes and address the associated concerns before coming to a conclusive decision. The official communication stated:
The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
Notable market observers, such as James Seyffart, an ETF analyst at Bloomberg Intelligence, expected the SEC’s decision.
The action taken by the SEC reflects the agency’s careful stance when it comes to products related to cryptocurrencies. This careful stance is consistent with the SEC’s behavior from the previous year, where it put off making a decision on Bitcoin spot ETFs until it eventually gave the green light earlier this year.
After greenlighting 11 Bitcoin ETFs in January, the SEC put off deciding on the spot Ethereum ETF proposals from Grayscale and BlackRock. Then, in February, the SEC once again deferred its decision, this time on a spot Ethereum ETF proposal jointly submitted by Invesco and Galaxy Digital.
Although the SEC’s decision to postpone its verdict on Grayscale’s Ethereum futures ETF might be a letdown for some cryptocurrency supporters, there are those who see the postponement in a positive light. They believe this additional time could lead to wider acceptance of Bitcoin ETFs.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
