The US Securities and Exchange Commission (SEC) has given Grayscale more time to make a choice about its spot Ethereum exchange-traded fund (ETF) offering. After today, January 25, 2024, the SEC has to decide if they agree with the suggested rule change that would let NYSE Arca list and trade shares of the Grayscale Ethereum Trust.
The decision has been put off because of a recent court order telling the SEC to look over Grayscale’s Bitcoin ETF offering in October. The SEC gave itself more time by saying it needs to carefully consider the suggested rule change and deal with the issues that come up with it.
A well-known asset manager called Grayscale has been trying to get approval for a spot Ethereum ETF. This would let investors get exposure to Ethereum without actually holding the coin. Because of the delay, the SEC has more time to think about the possible effects and risks of putting a spot Ethereum trading vehicle on the market.
As interest in cryptocurrency exchange-traded funds (ETFs) grows, this choice comes at a time when regulatory bodies are closely looking at such proposals. The SEC’s ruling will probably have effects on the whole market, and Grayscale’s Ethereum Trust is a big player in the world of digital assets.
Investors and people in the industry will be closely watching what happens as the SEC decides whether to approve or reject the Grayscale Ethereum Trust ETF.
Instead of listing spot BTC or ETH exchange-traded funds on U.S. exchanges, the SEC has permitted crypto futures investment vehicles. Bloomberg ETF expert James Seyffart suggested that if the commission approves a spot BTC ETF, it may authorize funds from numerous businesses simultaneously.
Grayscale filed with the SEC in October to convert its Grayscale Ethereum Trust shares into a spot Ether ETF, joining the list of entities awaiting a ruling. At publishing, BlackRock, Hashdex, ARK 21Shares, Invesco Galaxy, VanEck, and Fidelity applied for spot crypto ETFs.
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