SEC Delays Decision on Grayscale Ethereum Exchange-Traded Fund Once More

SEC Delays Decision on Grayscale Ethereum Exchange-Traded Fund Once More

A document submitted on Friday by Grayscale Ethereum Futures Trust stated that the US Securities and Exchange Commission has chosen to postpone its judgment about the approval of the Ethereum ETF application. A new deadline of May 30th has been established.

Grayscale’s Application Has Been Deferred Until the End of May 2024

Pursuant to the Securities Exchange Act of 1934, the agency is given either 180 days or six months to act upon the notice of proposed rule change following its publication. Despite initial submission in September, the EPA has decided to delay the Grayscale application until November until further notice.

The Securities and Exchange Commission (SEC) has stated that it is necessary to extend the time for an order to be issued regarding the proposed rule change. This extension will allow enough time to thoroughly review the rule change and any related issues, as previously mentioned.

Important Features of Exchange-Traded Funds (ETFS) That Make Them Unique

Exchange-traded funds (ETFs) are a type of investment fund that tracks the value of digital assets and is traded on traditional stock exchanges. Bitcoin and Ethereum ETFs are examples of such funds. This makes it possible for investors to gain exposure to the world of cryptocurrency without the requirement that they directly possess tokens. The anticipated value of the asset is the focal point of a futures exchange-traded fund (ETF), in contrast to a spot ETF, which is concerned with monitoring the present value in real-time.

After approving 11 Bitcoin exchange-traded funds (ETFs) in the past, the Securities and Exchange Commission (SEC) decided in January to delay its evaluation of the spot Ethereum ETF application that Grayscale and BlackRock submitted. In the month that followed, the Securities and Exchange Commission (SEC) decided to delay its decision regarding a joint Ethereum exchange-traded fund (ETF) application that was submitted by investment firms Invesco and Galaxy Digital.

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Investors’ Opinions Are Divided

The Securities and Exchange Commission (SEC) decision regarding Grayscale’s Ethereum futures exchange-traded fund (ETF) may be disheartening for cryptocurrency investors and enthusiasts; however, there are those who contend that the agency’s decision to postpone the decision is actually advantageous. As a result of this delay, they believe that there will be a greater acceptance of Bitcoin exchange-traded funds (ETFs).

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Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Tether (USDT)
Cardano (ADA)

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“If spot Ethereum ETFs are launched in December rather than May, they are likely to attract a greater amount of assets,” said Matt Hougan, the Chief Information Officer of Bitwise, in a tweet. “This is because December is a more favorable month for launches.” According to recent news reports, “Traditional Finance (TradFi) requires additional time to comprehend and analyze the implications of Bitcoin ETFs fully.”

One of the most contentious statements I made during my presentation at @blockworksDAS today:

Ethereum ETFs are likely to attract a more significant amount of assets if they are introduced in December compared to their launch in May. Traditional finance requires additional time to fully comprehend and analyze the bitcoin exchange-traded funds (ETFs).

— Matt Hougan

One factor contributing to the downward momentum exerting pressure on the price of Ethereum is the SEC’s decision to delay its ruling on the Ethereum exchange-traded fund (ETF). Coingecko reported that Ethereum had experienced a decline of 10.4% over the course of the week and was currently being traded at $3,289 as of Friday. This information was obtained from the cryptocurrency exchange.

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