The United States Securities and Exchange Commission (SEC) has announced an extension of the decision deadline for the approval or disapproval of Grayscale’s spot Ethereum exchange-traded fund (ETF). The SEC, in a statement on Dec. 5, mentioned that it requires additional time to thoroughly evaluate the proposed rule change allowing NYSE Arca to list and trade shares of the Grayscale Ethereum Trust.
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.
The new deadline for the SEC to either approve or disapprove, or initiate proceedings to determine disapproval, is set for January 25, 2024. This decision follows an appellate court’s directive in October for the SEC to review Grayscale’s Bitcoin ETF offering. The SEC’s move reflects its cautious approach and thorough examination of cryptocurrency-related investment products.
Bloomberg ETF analyst James Seyffart suggested that if the SEC decides to approve a spot Bitcoin ETF, it might subsequently move forward with approving funds from various firms simultaneously.
Grayscale filed its proposal to convert shares of the Grayscale Ethereum Trust into a spot Ether ETF in October, joining a list of companies awaiting regulatory decisions. Other firms seeking approval for spot crypto ETFs include BlackRock, Hashdex, ARK 21Shares, Invesco Galaxy, VanEck, and Fidelity.