The United States Securities and Exchange Commission (SEC) has announced a delay in its decisions regarding the applications for spot Ether exchange-traded funds (ETFs) submitted by BlackRock and Grayscale.
The SEC released notices of the delay in the Grayscale decision and the amending of the BlackRock application shortly after postponing its decision on Franklin Templeton’s proposed spot ETH ETF. The decision on Grayscale’s proposal to convert its ETH Trust to a spot ETH exchange-traded product on NYSE Arca, originally due on April 24, will now be extended by 60 days to June 23.
The SEC stated that it requires additional time to thoroughly evaluate the proposed rule change, especially in light of Amendment No. 1 submitted by Grayscale. While the amendment strengthened Grayscale’s arguments, it did not significantly alter the original proposal.
The SEC is now anticipated to make a decision on the Franklin Templeton application by June 11, with further updates on the BlackRock application yet to be specified.
On April 23, Grayscale filed an S-3 form for a Grayscale ETH Trust and an S-1 for a Grayscale ETH Mini Trust, while BlackRock submitted an S-1 application for a spot ETH ETF in November. BlackRock amended its application on April 19, with the SEC detailing the changes in the amendment, primarily focusing on the creation and redemption of shares.
Observers speculate that the SEC’s delay in processing spot ETH ETF applications may signal a potential rejection. However, Grayscale previously secured a legal victory against the SEC in August, partially overturning the agency’s rejection of its Bitcoin ETF application.
The delays in SEC decisions regarding spot Ether ETF applications from BlackRock and Grayscale underscore the regulatory complexities surrounding cryptocurrency ETFs, leaving stakeholders awaiting further developments in the coming months.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up