U.S SEC Delays Grayscale’s Ethereum Trust ETF Application

• The regulatory body had done the same thing the day before with BlackRock’s application.
• Fifteen days prior to the SEC’s notification, the agency had authorized spot Bitcoin ETFs.

An application by Grayscale Investments to transform its Ethereum trust product (ETHE) into an exchange-traded fund (ETF) was postponed by the U.S. SEC. The regulatory body had done the same thing the day before with BlackRock’s request for a comparable vehicle. A judgment on BlackRock’s spot Ethereum ETF was postponed by the SEC until March on January 25.

Issuers and exchanges started submitting revised paperwork answering the SEC’s many inquiries in the days leading up to the approval of spot bitcoin ETF applications. It is not apparent whether the applications for the spot Ethereum ETF have reached this point.

Not Unexpected

Despite the SEC’s long standing opposition to spot crypto ETF products, a slew of bitcoin ETFs were finally able to launch in the United States early this January. The decision to postpone Thursday’s application review by Grayscale and the BlackRock offer is not unexpected.

The SEC said on January 25 that it will begin procedures to decide whether to accept or reject a rule modification that would let NYSE Arca to list and trade the shares of Grayscale Ethereum Trust.

A public-opinion topic that has arisen concerns the potential similarities and differences between spot bitcoin and ethereum exchange-traded funds (ETFs). Fifteen days prior to the SEC’s notification, the agency had authorized the listing of spot Bitcoin ETF shares on U.S. exchanges, which included an offering from the Grayscale Bitcoin Trust.

Over the nine trading days after its debut, GBTC had outflows of almost $4.4 billion, ranking it at the top among the ten authorized spot BTC ETFs.

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