SEC Postpones Approval Decision on Grayscale Ethereum ETF Once Again
The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on whether to approve Grayscale Ethereum Futures Trust’s Ethereum ETF application. In an official document filed on Friday, the agency announced that the new deadline for its decision is now set for May 30.
According to the Securities Exchange Act of 1934, the SEC has a maximum of 180 days or six months from the date of the proposed rule change notice to make a decision. Grayscale’s application was initially filed in September, and the agency deferred its decision in November.
In its announcement, the SEC stated that it requires more time to thoroughly consider the proposed rule change and the related issues. This echoes previous statements made by the agency regarding the delay.
Bitcoin and Ethereum ETFs are investment funds that track the prices of digital assets and can be traded on traditional stock exchanges. They provide investors with exposure to cryptocurrencies without the need to directly hold tokens. While spot ETFs track the current real-time prices of assets, futures ETFs focus on future price movements.
The SEC has previously approved 11 Bitcoin ETFs but delayed its decision on spot Ethereum ETF applications from Grayscale and BlackRock in January. The agency also postponed its decision on a joint spot Ethereum ETF application from Invesco and Galaxy Digital in the following month.
Although the SEC’s delay in approving Grayscale’s Ethereum futures ETF may disappoint some cryptocurrency investors and enthusiasts, others see it as a positive development. They believe the delay allows for more widespread adoption of Bitcoin ETFs.
Matt Hougan, the Chief Information Officer of Bitwise, stated on Twitter that spot Ethereum ETFs could accumulate more assets if they launch in December instead of May. He believes that traditional finance (TradFi) needs more time to digest the introduction of Bitcoin ETFs.
The SEC’s decision to postpone the Ethereum ETF decision adds further downward pressure on the price of Ethereum. As of now, Ethereum has seen a 10.4% decrease in value for the week and is currently trading at $3,289 according to Coingecko.