SEC extends deadline to make decision on Grayscale Ethereum Spot ETF

The United States Securities and Exchange Commission (SEC) has extended the deadline for its decision to approve or disapprove an ethereum exchange-traded fund (ETF) for Grayscale Investments, one of the world's leading crypto asset managers.

According to a official documentThe SEC will make its decision by January 25, 2024, a 45-day extension from the initial deadline of December 11, 2023.

SEC delays decision on ethereum spot ETF

Grayscale filed an application with the SEC to convert its Grayscale ethereum Trust (ETHE) into an ethereum spot ETF in early October, becoming the fifth company to do so after VanEck, HashDex, Galaxy/Invesco, and Ark Invest/21Shares.

Following the request of the asset manager, the New York Stock Exchange (NYSE) Arca filed a rule change proposal with the SEC to list and trade shares of the crypto product on its platform. In turn, the US regulator published the proposed rule change for public comment at the end of October.

At the end of the public comment period, the SEC has decided to designate a longer period to determine whether the proposed rule change allowing NYSE Arca to list ETHE shares should be approved or disapproved.

“The 45th day after publication of the notice for this proposed rule change is December 11, 2023. The Commission is extending this 45-day period. “The Commission believes it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the Commission stated.

GBTC Framework Grayscale Updates

There remains a possibility that the SEC may decide to begin proceedings to determine whether to disapprove of the proposed rule change before January 25, further extending the deadline for revealing its decision.

The regulator's latest announcement comes as the crypto community anticipates the approval of the first bitcoin spot ETF, with several asset managers, including Grayscale, in the running.

Grayscale recently upgraded its deal framework for the Grayscale bitcoin Trust (GBTC) in preparation for its potential conversion to a spot bitcoin ETF. The adjustment is aimed at ensuring fair competition with other spot bitcoin ETF contenders such as BlackRock, Ark Invest, Fidelity, and VanEck.

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