New Deadline: May 30, 2024
The SEC has pushed back the deadline for its decision on Grayscale’s Ethereum Futures ETF. The original deadline was March 31, but it has been extended to May 30.
Reasons for the Delay:
The SEC says it needs more time to review the proposed rule change and the issues it raises.
Analyst’s Perspective:
Bloomberg ETF analyst James Seyffart says the delay is not surprising. He believes Grayscale’s application is a “trojan horse” to get approval for its spot ETH ETF.
Approval of Spot ETH ETF Unlikely:
Galaxy Digital’s head of research, Alex Thorn, says approval of spot ETH ETFs is looking very unlikely. He cites the SEC’s subpoena of crypto firms and lack of engagement with potential ETF issuers.
SEC Investigation:
The SEC has subpoenaed crypto companies regarding their relationships with the Ethereum Foundation. Thorn suggests that the SEC may be investigating whether the original Ethereum ICO was an unregistered securities offering.
Conclusion:
The delay in Grayscale’s ETF decision and the SEC’s ongoing investigation make the approval of spot ETH ETFs seem very unlikely at this time.
