SEC Delays Decision on Grayscale and BlackRock's Spot Ether ETF Applications
Summary:
The US Securities and Exchange Commission (SEC) has postponed making decisions on the Grayscale and BlackRock spot Ether (ETH) ETF applications, following the delay of Franklin Templeton's similar proposal. Grayscale's ETH Trust conversion was due for April 24, but the SEC has extended it by 60 days to June 23 for further evaluation. Concurrently, Grayscale filed shortened S-3 and S-1 forms for their ETH Trust and Mini Trust, respectively. On the other hand, the SEC's decision on Amended BlackRock's ETF proposal is not known yet. Analysts interpret these delays as a sign of impending rejections of spot ETH ETFs.
The United States Securities and Exchange Commission (SEC) has deferred its verdict on both the Grayscale and BlackRock proposals for spot Ether (ETH) exchange-traded funds (ETFs). This announcement follows closely from the delay of Franklin Templeton's suggested spot ETH ETF by the regulatory agency. Originally, decison on transforming Grayscale’s ETH Trust into a spot ETH tradeable product on NYSE Arca was set for April 24. It has now been extended by 60 days to June 23. The SEC clarified in their April 23 notice that this extension was necessary for an adequate evaluation of the amended proposition. The SEC had earlier informed of Grayscale's amendment filing in an April 2 notice. While this amendment bolstered Grayscale's arguments, it did not significantly alter the proposal. The SEC's verdict on the Franklin Templeton proposal is expected by June 11. On April 23, Grayscale also submitted a shorter S-3 form for their ETH Trust and an S-1 form for an ETH Mini Trust. BlackRock had filed an S-1 application for a spot ETH ETF in November and its decision was postponed in March. Subsequently, decisions on Hashdex and ARK 21 spot ETH ETF applications were delayed by the SEC to late May. A further amendment to their application was filed by BlackRock in April. The revised proposal detailed changes primarily related to the creation and redemption of shares, and extended the comment period for 21 days post its Federal Register publication. The SEC is yet to specify a new deadline for its decision. Analysts suggest that SEC's lack of enthusiasm on spot ETH ETF applications may be indicative of potential rejection. Grayscale previously managed to prevail over the SEC in August when a court ruling partially reversed the SEC's refusal to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin (BTC) ETF.
Published At
4/24/2024 12:51:26 AM
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