The United States Securities and Exchange Commission (SEC) has decided to postpone its ruling on the applications for spot Ether (ETH) exchange-traded funds (ETFs) from BlackRock and Grayscale. The SEC announced the delay in the decision regarding Grayscale’s proposal and the amendment to BlackRock’s application shortly after postponing its decision on Franklin Templeton’s proposed spot ETH ETF.
The SEC was originally scheduled to make a decision on the conversion of Grayscale’s ETH Trust to a spot ETH exchange-traded product on NYSE Arca by April 24. However, the decision has now been extended by 60 days to June 23. In its notice on April 23, the SEC stated that it requires more time to carefully consider the proposed rule change, as modified by Amendment No. 1. The notice of Grayscale’s amendment filing was published on April 2. While the amendment strengthened Grayscale’s arguments, it did not significantly alter its proposal.
Furthermore, the SEC is expected to rule on Franklin Templeton’s application by June 11. On April 23, Grayscale submitted an S-3 form for a Grayscale ETH Trust and an S-1 for a Grayscale ETH Mini Trust.
In November, BlackRock submitted an S-1 application for a spot ETH ETF. However, the decision on BlackRock’s application was delayed in March. Later that same month, the SEC also postponed its decision on Hashdex and ARK 21 spot ETH ETF applications by two months, with a new deadline set for late May. On April 19, BlackRock filed an amendment to its application. The SEC notice on April 23 provides details about the changes made in the amendment, primarily focusing on the creation and redemption of shares. It also extends the comment period on the proposal for 21 days after its publication in the Federal Register, without specifying a new deadline for an SEC decision.
Observers believe that the SEC’s lack of engagement with spot ETH ETF applications suggests a potential rejection. Grayscale previously achieved a victory over the SEC in August when an appeals court partially overturned the SEC’s rejection of its application to convert the Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin (BTC) ETF.
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