SEC Postpones Decision on Spot Ethereum ETFs
The US Securities and Exchange Commission (SEC) has postponed its decisions on spot Ethereum exchange-traded funds (ETFs) applications by Blackrock, the world’s largest asset manager, and Grayscale Investments. Grayscale is looking to convert its existing Ethereum Trust into a spot ETF.
Two Applications on Spot Ethereum ETF Postponed
The US Securities and Exchange Commission (SEC) postponed two applications for spot Ethereum exchange-traded funds (ETFs) this week. Investors are closely observing the SEC for decisions on spot Ethereum ETF applications following the recent approval of eleven spot Bitcoin exchange-traded ETFs.
The SEC has postponed an application by the Nasdaq Stock Market to list and trade shares of Blackrock’s Ishares Ethereum Trust on Wednesday. The application that was filed on November 21, 2023, was published for comment in the Federal Register on December 11.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change,” the SEC stated, adding:
"The Commission designates March 10, 2024, as the date by which the Commission shall either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change."
The SEC approved eleven spot bitcoin ETFs on January 10, including Grayscale’s application to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Most approved spot Bitcoin ETFs began trading on January 11. Blackrock’s Ishares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have emerged as the leaders based on spot Bitcoin ETF trading volume.
The SEC also postponed its decision on Grayscale’s Ethereum Trust on Thursday. The asset manager seeks to convert its Ethereum Trust (ETHE) into a spot Ethereum ETF. NYSE Arca filed a proposed rule change to list and trade shares of the Grayscale Ethereum Trust with the SEC on October 10, 2023.
SEC is Instituting Proceedings for Proposed Rule Change
The SEC is now instituting proceedings “to allow for additional analysis of the proposed rule change,” according to the regulator’s announcement. The SEC also seeks comments on the proposed rule change. The regulator stated:
"The Commission is instituting proceedings to determine whether the proposed rule change can be approved or disapproved. The Commission seeks and encourages interested parties to provide comments on the proposed rule change."
All comments are to be submitted within a period of 21 days from the date of publication in the Federal Register. Rebuttals to any submissions to be filed within 35 days of their publication in the Federal Register.
Do you think the SEC will soon approve spot Ethereum ETFs following the approval of spot Bitcoin ETFs? Please share your thoughts and opinions in the comments section below.
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