SEC Delays Decision on Ethereum ETFs: What’s Next for Grayscale?

By CoinPedia News
about 1 month ago

The post SEC Delays Decision on Ethereum ETFs: What’s Next for Grayscale? appeared first on Coinpedia Fintech News

The U.S. Securities and Exchange Commission (SEC) is still delaying its definitive ruling on the proposals for Ethereum-based Exchange Traded Funds (ETFs) even after a month of extension. 

As the SEC’s deadline to decide on Ethereum ETFs looms on May 23rd, the atmosphere is filled with anxiety and speculations, particularly concerning major player Grayscale Investments’ efforts to transition its Ethereum Trust into a spot ETF.

“It’s not looking very promising”

“As has been widely reported, the consensus is that because there has been little to no meaningful engagement from SEC staff on the issuers’ applications, that they will ultimately deny on May 23rd,” Fox Business journalist Eleanor Terrett revealed on X. 

This sentiment underscores a broader uncertainty and prevalent skepticism among crypto community members about the SEC’s pending decision. Last month, Bloomberg ETF analyst Eric Balchunas said there’s “a very pessimistic 25%” chance of approval of Spot Ethereum ETFs. 

Terret reported, “It’s not looking very promising,” one issuer expressed, while another pointed out that necessary conversations have not occurred at this critical juncture. 

Grayscale Updates S-3 Form

Within an hour and a half of Eleanor Terret’s insider tweet, Grayscale Investments published a press release announcing a significant step in the process of getting Ethereum ETFs approved.

“Today, we filed a registration statement on Form S-3 to register shares of Grayscale Ethereum Trust (OTCQX: $ETHE) under the Securities Act of 1933. This is another important step toward uplifting ETHE as an ETF,” the press release declared. 

The firm’s filing of Form S-3, coupled with an earlier Form 19b-4 submitted by NYSE Arca, aims to transform its Ethereum Trust into a spot ETF. The filing has yet to be made available for public view. Further, Grayscale emphasized that the shares will soon be sold only by means of a prospectus. 

What’s Next?

Despite these concerns, some remain hopeful, clinging to the similarities between the Ethereum ETFs and previously proposed Bitcoin ETFs and betting on the quick resolution of staking-related issues. 

With only a month left before the SEC’s decision, the negative stigma prevailing is least likely to surge Ether prices, the opposite of what happened before Bitcoin ETFs were approved. 

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