The U.S. Securities and Exchange Commission (SEC) has postponed the decision on Grayscale Investments’ application to transform its Ethereum trust product (ETHE) into an exchange-traded fund (ETF). This delay comes shortly after a similar decision regarding BlackRock’s application for a comparable vehicle.
The SEC has traditionally been hesitant about approving spot crypto ETF products, with the recent approval of spot bitcoin ETFs in January marking a significant departure from its previous stance. The delay in deciding on Grayscale’s application aligns with the SEC’s cautious approach.
In the lead-up to the approval of spot bitcoin ETFs, issuers and exchanges submitted updated documents addressing various concerns raised by the regulator. It remains uncertain whether spot ethereum ETF applications have progressed to this stage.
The recent filings include questions for public consideration, such as whether a spot ethereum ETF is comparable to a spot bitcoin ETF. The SEC is seeking input on arguments supporting the listing of Bitcoin ETPs and whether these arguments are applicable to Ethereum. Additionally, questions about market manipulation, the correlation between spot and futures markets, and the significance of the CME futures market’s size mirror those asked in the SEC’s review of bitcoin applications.
The delays in the decision-making process for spot ether ETF applications indicate the SEC’s continued scrutiny and cautious approach to cryptocurrency-related investment products.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.