SEC Extends Choice Deadline for Grayscale Ether Futures ETF by 60 Days

• The SEC has delayed its resolution relating to Grayscale’s ETH Futures ETF.
• Initially set for March, the choice deadline has been pushed again to Might 30.
• The SEC’s resolution comes as no shock to outstanding market watchers.

In a current submitting, the U.S. Securities and Change Fee (SEC) introduced one more delay in its resolution relating to Grayscale’s Ethereum futures exchange-traded fund (ETF) utility. Initially filed on September 19, 2023, the proposed rule change sought to record and commerce the Grayscale Ethereum Futures Belief ETF shares.

Regardless of earlier extensions and proceedings initiated by the fee, the SEC has prolonged the evaluate interval by 60 days. Initially set for March 31, 2024, the choice deadline has been pushed again to Might 30, 2024.

The SEC cited the necessity for ample time to fastidiously contemplate the proposed rule modifications and their varied points earlier than reaching a ultimate verdict. The assertion learn:

The Fee finds that it’s applicable to designate an extended interval inside which to difficulty an order approving or disapproving the proposed rule change in order that it has adequate time to contemplate the proposed rule change and the problems raised therein.

In the meantime, the SEC’s resolution comes as no shock to outstanding market watchers, similar to James Seyffart, Bloomberg Intelligence ETF analyst.

In the end, the transfer from the SEC underscores the regulatory physique’s cautious method in the direction of cryptocurrency-related monetary merchandise. This cautious method echoes the SEC’s actions final yr when it deferred its resolution on Bitcoin spot ETFs till lastly granting approval earlier this yr.

Following the approval of 11 Bitcoin ETFs in January, the SEC delayed its resolution on the spot Ethereum ETF functions from Grayscale and BlackRock. Subsequently, in February, the SEC postponed its resolution on a joint spot Ethereum ETF utility from funding companies Invesco and Galaxy Digital. 

Whereas the SEC’s resolution to delay its ruling on Grayscale’s Ethereum futures ETF may disappoint some crypto lovers, others view the delay as a constructive growth. They argue that this extension might pave the best way for larger adoption of Bitcoin ETFs.