The SEC has extended the review period for Grayscale's Ethereum futures ETF application by 60 days, citing the need for more time to consider the proposed rule changes. This decision aligns with the SEC's cautious approach towards cryptocurrency-related financial products, as evidenced by its previous delays in approving Bitcoin spot ETFs and postponing decisions on Ethereum ETF applications.
In a recent filing, the U.S. Securities and Exchange Commission (SEC) announced yet another delay in its decision regarding Grayscale’s Ethereum futures exchange-traded fund (ETF) application. Initially filed on September 19, 2023, the proposed rule change sought to list and trade the Grayscale Ethereum Futures Trust ETF shares.
Despite previous extensions and proceedings initiated by the commission, the SEC has extended the review period by 60 days. Initially set for March 31, 2024, the decision deadline has been pushed back to May 30, 2024.
The SEC cited the need for ample time to carefully consider the proposed rule changes and their various issues before reaching a final verdict. The statement read:
The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
Meanwhile, the SEC’s decision comes as no surprise to prominent market watchers, such as James Seyffart, Bloomberg Intelligence ETF analyst.
Ultimately, the move from the SEC underscores the regulatory body’s cautious approach towards cryptocurrency-related financial products. This cautious approach echoes the SEC’s actions last year when it deferred its decision on Bitcoin spot ETFs until finally granting approval earlier this year.
Following the approval of 11 Bitcoin ETFs in January, the SEC delayed its decision on the spot Ethereum ETF applications from Grayscale and BlackRock. Subsequently, in February, the SEC postponed its decision on a joint spot Ethereum ETF application from investment firms Invesco and Galaxy Digital.
While the SEC’s decision to delay its ruling on Grayscale’s Ethereum futures ETF might disappoint some crypto enthusiasts, others view the delay as a positive development. They argue that this extension could pave the way for greater adoption of Bitcoin ETFs.
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