Grayscale's Ethereum ETF Dreams Deferred As SEC Extends Review

The U.S. Securities and Exchange Commission (SEC) on Tuesday announced a delay in its decision regarding the listing and trading of shares of the Grayscale Ethereum ETH/USD Trust.

The decision, initially due in December 2023, has been postponed to Jan. 25, 2024, as the SEC required more time to review the proposal and address concerns.

On Oct. 10, 2023, NYSE Arca, Inc. submitted a proposal to the SEC for a rule change that would allow the listing and trading of shares of the Grayscale Ethereum Trust under NYSE Arca Rule 8.201-E, which pertained to Commodity-Based Trust Shares.

This proposal was made public on Oct. 27, 2023, inviting comments and discussions from the public and industry stakeholders.

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The SEC's standard procedure allows for a 45-day period to review such proposals, with an option to extend this period up to 90 days if deemed necessary.

Grayscale's Ethereum Trust aims to provide investors with exposure to Ethereum through a regulated, exchange-listed instrument, which is a significant step for mainstream acceptance and institutional investment in cryptocurrencies.

Recently, the SEC postponed its verdict on the Hashdex Nasdaq Ethereum ETF proposal, which intended to invest in both direct ether holdings and futures contracts.

Additionally, other companies, such as BlackRock Inc., are exploring the possibility of introducing a spot Ether ETF, contingent on receiving regulatory clearance.

On Monday, both BlackRock and Bitwise updated their S-1 filings with the SEC for their respective spot Bitcoin BTC/USD ETF proposals.

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