The Securities and Exchange Commission (SEC) of the United States has once again extended the deadline for deciding on the approval of Grayscale’s Ethereum Futures Trust exchange-traded fund (ETF). In a filing released on March 22, the SEC announced that it would delay the decision until May 30 regarding whether or not to approve Grayscale’s ETF, which would focus on investing in Ethereum futures contracts.
Back in December 2023, the SEC postponed the approval date for Grayscale’s futures ETF product, stating that it needed more public input before listing the ETF. This decision came just three months after Grayscale proposed listing and trading shares of its Ethereum Futures Trust ETF under the New York Stock Exchange Arca Rule 8.200-E.
Bloomberg ETF analyst James Seyffart suggested that Grayscale was using its futures ETF application as a means to influence the SEC’s decision on its spot Ether ETF. If the SEC were to approve the futures ETF, it would provide Grayscale with a stronger argument for approving its spot Ether ETF application.
In addition to Grayscale, other asset management firms like BlackRock and Fidelity are also facing delays in the approval process for their Ethereum ETFs. The SEC announced on March 4 that its decision on BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund would be postponed.
With the recent approval of spot Bitcoin ETFs on January 10, there is growing skepticism among industry commentators as to whether the SEC will take a tougher stance on crypto-based ETFs. Capital founder John Lo expects increased scrutiny from the SEC on all upcoming crypto-based ETFs, particularly those focused on Ethereum.
Overall, the SEC’s decision to extend the deadline for Grayscale’s Ethereum Futures Trust ETF approval, along with the delays faced by other asset management firms, suggests that the SEC may be taking a cautious approach towards crypto-based ETFs.