SEC Investigates Grayscale’s Ether ETF, Pushing Deadline for Approval

SEC Delays Decision on Grayscale’s ETH Exchange-Traded Fund

The Securities and Exchange Commission (SEC) of the United States has postponed its ruling on whether to approve or reject a proposed Ether (ETH) exchange-traded fund (ETF) by Grayscale Investments. This move allows for public comments on the application.

In a notice released on January 25, the SEC announced that it will initiate proceedings to determine the fate of NYSE Arca’s proposal to list and trade shares of the Grayscale Ethereum Trust. This decision opens the door for public input, extending the deadline for a verdict by 35 days after publication in the Federal Register.

The SEC stated, “Interested individuals are encouraged to submit written data, opinions, and arguments regarding the approval or disapproval of the proposed rule change.”

This announcement comes two weeks after the SEC approved the listing of spot Bitcoin (BTC) ETFs on U.S. exchanges, including Grayscale’s Bitcoin Trust. Since its launch, the Grayscale Bitcoin Trust has seen significant outflows, totaling approximately $4.4 billion over nine trading days.

In October, Grayscale submitted a filing to the SEC to convert its Grayscale Ethereum Trust shares into a spot Ether ETF, joining the list of companies eagerly anticipating a decision from the regulatory body. On January 25, the SEC extended the decision deadline for BlackRock’s spot Ethereum ETF to March, leading many experts to speculate that the commission may take the full 240 days allowed to make a ruling.