SEC Delays Decision on Grayscale Ether Futures ETF

SEC Extends Deadline for Decision on Grayscale’s Ethereum Futures Trust ETF

The United States Securities and Exchange Commission (SEC) has once again pushed back the deadline for approving Grayscale’s proposed Ethereum (ETH) Futures Trust exchange-traded fund (ETF).

In a filing released on March 22, the SEC announced that it will now make a decision by May 30, rather than the original March 31 deadline, regarding the approval of Grayscale’s ETF. This ETF will primarily focus on investing in Ethereum futures contracts.

This is not the first time the SEC has delayed approval for Grayscale’s future ETF product. In December 2023, the SEC postponed the initial approval date in order to gather more public feedback on whether the ETF should be listed.

Grayscale first proposed listing and trading shares of the Grayscale Ethereum Futures Trust ETF on the New York Stock Exchange Arca Rule 8.200-E in September 2023.

Grayscale’s Trojan Horse Tactics to Influence SEC’s Decision on Ether ETF

In light of the recent listing, Bloomberg ETF analyst James Seyffart has raised concerns about Grayscale’s intentions with its futures ETF application. He believes that Grayscale is using it as a “trojan horse” to sway the SEC’s decision into approving its spot Ether ETF.

Seyffart explains that if the SEC were to approve Grayscale’s application, it would give the company leverage to push for the approval of its spot Ether ETF application.

On January 25, the SEC announced a delay in its decision on Grayscale’s spot Ether ETF application, also opening it up for public comments.

With the recent approval of spot Bitcoin ETFs on January 10, there is growing skepticism among industry experts about the SEC’s stance on crypto-based ETFs. Many are questioning whether the SEC will take a tougher approach towards them in the future.

Increased Scrutiny on Upcoming Crypto-based ETFs Expected by Capital Founder

In light of recent reports, it is anticipated that the Securities and Exchange Commission (SEC) will closely examine all upcoming crypto-based exchange-traded funds (ETFs), particularly those involving Ether.

Other asset management firms are also facing challenges with their proposed Ethereum ETFs.

In separate filings on March 4, the SEC announced that their decisions on applications from BlackRock for the iShares Ethereum Trust and Fidelity for the Ethereum Fund will be delayed.