U.S. SEC Delays Grayscale’s Application for Spot Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has delayed a decision on Grayscale’s application to convert its trust into a spot Ethereum ETF. The SEC has pushed back the decision until June 23, citing the need for more time to consider the proposed rule change.
Grayscale had submitted a Form 19b-4 with the NYSE Arca in October, seeking permission to transition its existing Ethereum Trust (ETHE) into a spot ETH ETF. The firm had previously successfully converted its GBTC product into a spot Bitcoin ETF in January.
In response to the SEC’s delay, Grayscale has filed Form S-3 to register under the Securities Act of 1933 in an effort to further its ETHE offering. This move comes as other issuers, including Franklin Templeton, BlackRock, Fidelity, and VanEck, have also seen delays in their applications for spot Ethereum ETFs.
Analysts speculate that the SEC’s Chairman, Gary Gensler, may be concerned about the staking feature added to some applications, as he has previously stated that most crypto assets are securities. Despite these delays, spot BTC ETFs have seen significant inflows, with over $12 billion in cumulative net inflow, while Grayscale’s GBTC fund has experienced substantial outflows.
