SEC Delays Verdict on Grayscale's Spot Ether ETF Until January 2024
Summary:
The US Securities and Exchange Commission (SEC) has postponed its decision regarding the approval of a spot Ether (ETH) exchange-traded fund (ETF) by asset manager Grayscale. The SEC aims to allocate more time to scrutinize the proposed rule change permitting NYSE Arca to enlist and trade shares from Grayscale's Ethereum Trust. The final decision, either approval or disapproval, or initiation of proceedings to decide on the proposed rule change, is set for January 25, 2024.
The verdict on the proposal for a spot Ether (ETH) exchange-traded fund (ETF) by Grayscale, a notable asset manager, has been postponed by the US Securities and Exchange Commission. In a notice issued on 5th December, the SEC declared an extension in the existing timeframe regarding the confirmation or rejection of a proposed rule change enabling NYSE Arca to list and trade shares from the Grayscale Ethereum Trust. This announcement from the commission comes after an appeals court mandated the SEC to introspect Grayscale's Bitcoin (BTC) ETF proposal in October.
The SEC expressed that it is logical to allocate more time for assessing the proposed rule alteration and to delve into the issues it encapsulates. As per the commission's statement, January 25, 2024, is the set date for deciding on the proposal's approval or disapproval, or to begin proceedings to evaluate whether to reject the proposed change.
As an update, the filing for Grayscale's Ethereum trust was predictably delayed and expected to occur by 12/6/23, which is quite normal.
Notably, the SEC has never authenticated a spot BTC or ETH ETF to be listed on any American exchange, although it has approved investment channels tied to cryptocurrency futures. Bloomberg ETF analyst, James Seyffart, speculated that if the commission were to sanction a spot BTC ETF, it might pave the way for concurrent approval of funds from various establishments.
Grayscale initially submitted its application to the SEC for transforming its Grayscale Ethereum Trust shares into a spot Ether ETF in October, thereby joining other companies awaiting a verdict from the regulatory body. The list of companies who have applied for spot crypto ETFs include BlackRock, Hashdex, ARK 21Shares, Invesco Galaxy, VanEck and Fidelity.
Published At
12/5/2023 11:38:05 PM
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