Ethereum ETF Decision Deferred: SEC Extends Evaluation to 2024

The United States Securities and Exchange Commission (SEC) has delayed its verdict on the proposed Grayscale Ethereum Trust exchange-traded fund (ETF). This move, announced on December 5, grants the SEC additional time to assess a rule change allowing NYSE Arca to list and trade the Grayscale Ethereum Trust shares. They have set a new deadline for the decision on January 25, 2024.

The decision follows this month’s appellate court order, urging the SEC to go back and review the Grayscale’s Bitcoin offering made in October. SEC pointed out that there is a need to thoroughly study the proposed rule change and the questions concerning it.

There have been no approved spot BTC/ETH ETFs from the SEC to be listed on US exchanges. This signifies an opening on the SEC’s side. The approval of investment vehicles connected with crypto futures further supports this trend. Nevertheless, the commission is very careful concerning spot ETFs, stressing that further examination should occur.

Furthermore, analysts, including James Seyffart from Bloomberg, speculate that if the SEC approves a spot BTC ETF, it might trigger concurrent approvals for similar funds from various firms. Grayscale initiated the process in October by filing with the SEC to convert its Ethereum Trust shares into a spot Ether ETF.

Update: As expected @Grayscale's Ethereum trust filing just got delayed. It was due by 12/6/23 so this is completely normal. pic.twitter.com/I6LXMZIGGN

— James Seyffart (@JSeyff) December 5, 2023

Ethereum Sparks SEC Debate

Multiple companies, such as BlackRock, Hashdex, ARK 21Shares, Invesco Galaxy, VanEck, and Fidelity, await SEC decisions on their spot crypto ETF applications. Scheduled for January 25, 2024, the SEC’s decision will determine the fate of the proposed rule change.

The evolution further highlights the critical legal issues about crypto-currency ETFs. The SCC’s manifestation of these issues being very complicated is evident in the lengthy period taken. Such intricacy is especially important regarding CFDs related to bitcoin in the US.

Moreover, industry stakeholders and investors are eagerly awaiting the SEC’s decision. The outcome could significantly impact the broader adoption of cryptocurrency investment vehicles within traditional financial markets. The delay underscores the meticulous nature of regulatory assessments in the rapidly evolving landscape of digital assets.

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