SEC pushes deadline to decide on Grayscale spot Ether ETF

The United States Securities and Exchange Commission has delayed its decision on whether to approve or disapprove of a spot Ether (ETH) exchange-traded fund, or ETF, offering from asset manager Grayscale.

In a Dec. 5 notice, the SEC said it would designate a longer period on whether to approve or disapprove of a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. The commission’s announcement was one of the first following an appellate court ordering the SEC to review Grayscale’s Bitcoin (BTC) ETF offering in October.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC. “Accordingly, the Commission […] designates January 25, 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.”

Update: As expected @Grayscale’s Ethereum trust filing just got delayed. It was due by 12/6/23 so this is completely normal. pic.twitter.com/I6LXMZIGGN

— James Seyffart (@JSeyff) December 5, 2023

Related: Grayscale Bitcoin Trust aims for ETF shift to narrow discount

The SEC has never approved a spot BTC or ETH exchange-traded fund for listing on a U.S. exchange, though it has given the green light to investment vehicles tied to crypto futures. Bloomberg ETF analyst James Seyffart speculated that should the commission decide to approve a spot BTC ETF, it could move forward with simultaneous approvals of funds from multiple firms.

Grayscale first filed with the SEC to convert shares of its Grayscale Ethereum Trust into a spot Ether ETF in October, adding its name to the list of companies awaiting a decision from the regulator. At the time of publication, applications from firms on spot crypto ETFs included BlackRock, Hashdex, ARK 21Shares, Invesco Galaxy, VanEck and Fidelity.

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