In a significant development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has initiated the process and extended the deadline for Grayscale Investments’ application for a spot Ethereum ETF. decision deadline.
Grayscale’s Ethereum ETF Review Period
Grayscale’s application filed with the SEC on October 10, 2023, sought approval to list and trade Grayscale’s stock. Ether Trust on the New York Stock Exchange (NYSE) Arca under the commodity-based trust stock rules.
The proposed rule changes were published for public comment in the Federal Register on October 27. In response, the SEC provided an extended period for approving, disapproving, or initiating proceedings on proposed rule changes, similar to previous Commission steps. approval January 11 Bitcoin spot exchange trading funds.
As the lawsuit began, the SEC decided It said it would “thoroughly” analyze the proposed rule changes for approval. The Board’s decision to file a lawsuit does not indicate any prejudice.
Instead, it reflects the need for further investigation into legal and policy issues related to the application of Ethereum ETFs.
The SEC notes the need to consider the consistency of the proposed rule changes with Section 6(b)(5) of the Securities Exchange Act of 1934, which requires national securities exchange rules to prevent fraudulent and manipulative practices, protect investors, and provide services to the public. This is especially emphasized. interest.
Stakeholders are encouraged to comment on whether the exchange’s statements are sufficient to support: proposal Other concerns related to the proposed rule change.
SEC Requests Feedback
The Committee poses several questions to commenters that need to be addressed, including the appropriateness of listing and trading securities under NYSE Arca Rule 8.201-E, given the nature of the underlying assets held by the Trust.
The SEC also notes the exchange’s claim to list and trade spot Bitcoin exchange-traded products (ETPs). Additional input.
Individuals and organizations interested in applying for an Ethereum ETF are invited to submit written data, opinions, and arguments regarding the consistency of the proposed rule changes with the law and applicable regulations. Although oral presentations are not deemed necessary at this stage, the Committee will consider requests for such presentations.
Given the recent approval of 11 Bitcoin spot exchange-traded funds, the Commission’s future action on approving Ethereum ETF applications remains uncertain.
It is also worth considering the SEC’s classification of Ethereum as a “security” and how this classification may affect the decision-making process of the 12 Ethereum ETF applications. It is important to note that the SEC views Bitcoin as a unique product within the cryptocurrency market.
In line with Bitcoin’s trajectory, Ethereum (ETH) has experienced a significant correction, falling more than 14% over the past 14 days and more than 11% over the past 7 days. As a result, the current price is $2,217.
Featured image from Shutterstock, chart from TradingView.com