SEC Postpones Verdict on Grayscale's Ether ETF, Invites Public Feedback
Summary:
The US Securities and Exchange Commission (SEC) has deferred its decision to approve or disapprove an Ether (ETH) exchange-traded fund by Grayscale Investments, now inviting public comments. This extends the decision deadline by 35 more days. The decision follows the SEC's prior approval of spot Bitcoin ETF listings on US exchanges. Grayscale's Bitcoin Trust has seen significant outflows, hitting around $4.4 billion over nine trading days. Meanwhile, a decision concerning BlackRock’s Ethereum ETF has also been postponed until March.
The US Securities and Exchange Commission (SEC) has delayed its verdict concerning the approval or denial of a spot Ether (ETH) exchange-traded fund proposed by Grayscale Investments, opting to instigate a phase of public commentary. The regulator's statement, issued on January 25, confirmed that it will launch a series of proceedings to evaluate the approval or disapproval of a proposed rule alteration permitting NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. Extending the proposed investment scheme for public review will postpone the final decision's deadline by an additional 35 days following the publication in the Federal Register. The SEC invited anyone interested to present their written data, views, and arguments about the potential approval or disapproval of the suggested rule modification.
The SEC's announcement arrived a fortnight after giving the green light to spot Bitcoin (BTC) ETFs' listings on US exchanges for the first time, among which was an offer from the Grayscale Bitcoin Trust. From its initiation, GBTC outflows have topped the charts among the total 11 approved spot BTC ETFs, hitting a staggering $4.4 billion in just nine trading days.
Grayscale initially submitted the proposal to transform shares of its Grayscale Ethereum Trust into a spot Ether ETF to the SEC back in October, joining the roster of companies in line for a resolution from the regulatory body. On January 25, the SEC extended the decision timeframe for BlackRock’s spot Ethereum ETF till March, fueling expert speculation that the commission may exploit the full 240 days permitted for their final resolution.
Published At
1/25/2024 8:20:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.