Grayscale’s application to convert its trust into a spot Ethereum ETF has been delayed by the US SEC.
The SEC has postponed until June 23 a decision on a proposed rule change that would allow domestic U.S. exchanges to list and trade Grayscale’s proposed spot Ethereum (ETH) ETF.
“The Commission determines that it is appropriate to address the issue with sufficient time to consider the proposed rule changes as modified by Amendment 1 by specifying a longer period for issuing an order approving or disapproving the proposed rule changes. . “I grew up there.”
US SEC website
Last October, Grayscale filed Form 19b-4 with NYSE Arca, requesting permission from the SEC to convert its existing Ethereum Trust (ETHE) into a spot ETH ETF. The company submitted the same process for its GBTC product and successfully converted it to a spot Bitcoin (BTC) ETF in January.
Following recent action by the SEC, Grayscale filed Form S-3 to register under the U.S. securities laws to further its efforts in offering ETHE.
A similar application filed by asset manager Franklin Templeton has been delayed until June 11, Crypto.com reported on April 23, according to a document on the Wall Street regulator’s website.
Other filings from issuers BlackRock, Fidelity and VanEck seeking a spot Ethereum ETF have also been delayed as the SEC buys time to decide whether to accept or reject such bids. Analysts have speculated that the staking feature added to some applications may have something to do with SEC Chairman Gary Gensler, who has repeatedly argued that most cryptocurrency assets are securities.
Since then, the spot BTC ETF has recorded cumulative net inflows of over $12 billion, despite large exits from the Grayscale fund. GBTC outflows reached $1.6 billion earlier this week, causing it to lose 50% of the trading volume it previously managed.