The SEC has delayed making a decision on Grayscale’s request to launch a Ethereum spot ETF. The review timeline has been extended to June 23rd. This decision signifies yet another delay in the approval of cryptocurrency-backed ETFs in the United States.
In October, Grayscale submitted a grayscale application Form 19b-4 to NYSE Arca for the approval of transforming its existing Ethereum Trust into an Ethereum spot Exchange-Traded Fund (ETF). Similarly, in January, Grayscale underwent the conversion process to turn its Bitcoin Trust into a Bitcoin spot ETF.
Grayscale Faces Delay in Ethereum ETF Approval
The SEC’s decision to postpone acting on the proposal is based on the concerns and potential changes currently under review. The regulator explained that these modifications call for more time to evaluate their implications and address any issues that arise. Thorough examination is being given to the revised proposal to ensure it meets all regulatory standards.
The SEC has delayed the approval process for similar applications from asset managers besides Grayscale. Notable among these is Franklin Templeton, whose application is now scheduled for June 11. BlackRock, Fidelity, and VanEck have experienced the same delay.
SEC Stalls on Ethereum ETF Amid Concerns
Grayscale has made another move to enhance its Ethereum ETF application following the SEC’s recent action. The company filed a Form S-3 under the U.S. Securities Act, which is a registration statement, to progress with its Ethereum ETF initiatives. These actions underscore Grayscale’s commitment to securing approval from the regulatory body.
The hold-up in giving the green light for Ethereum spot ETFs indicates ongoing regulatory apprehension. Analysts warn that integrating staking functions into certain apps might pose challenges. SEC Chair Gary Gensler has repeatedly emphasized that most cryptocurrencies equate to securities. This perspective likely influences the SEC’s deliberate stance towards these ETFs.
Despite some challenges, the crypto ETF market has seen significant action, raking in over $12 billion in total net inflows following approval of a Bitcoin spot ETF. On the other hand, Grayscale’s Bitcoin Trust experienced substantial outflows, with a 50% decrease in managed assets during the recent week.
SEC Opens Comment Period for Revised BlackRock Ethereum ETF
Read More
- BTC PREDICTION. BTC cryptocurrency
- LIT PREDICTION. LIT cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- USD PHP PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- USD COP PREDICTION
- USD CNY PREDICTION
- ORAI PREDICTION. ORAI cryptocurrency
- EUR USD PREDICTION
- AVAX PREDICTION. AVAX cryptocurrency
2024-04-24 02:23