SEC Pushes Back Decision on Grayscale Ether Futures ETF – Once more, the United States Securities and Exchange Commission (SEC) has pushed back the deadline for determining the approval of Grayscale’s Ethereum Futures Trust exchange-traded fund (ETF) offered by the digital asset management firm.
Outlined in a filing released on March 22, the SEC announced its decision to extend the deadline from March 31 to May 30. This extension will provide additional time for the SEC to consider the approval of Grayscale’s Ethereum Futures Trust ETF, which is designed to invest in Ethereum futures contracts.
In December 2023, the SEC delayed the approval date for Grayscale’s futures ETF product, indicating that it would pursue further public feedback regarding the potential listing of the ETF. This occurred just three months following Grayscale’s submission in September 2023 to list and trade shares of the Grayscale Ethereum Futures Trust ETF under the New York Stock Exchange Arca Rule 8.200-E.
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After the listing, Bloomberg ETF analyst James Seyffart asserted that Grayscale was employing its futures ETF application as a “Trojan horse” to sway the SEC’s decision in favor of approving its spot Ether ETF. He elaborated that if the SEC endorsed Grayscale’s application, it would provide Grayscale with leverage to advocate for the approval of its spot Ether ETF application.
Meanwhile, on January 25, the SEC postponed its determination on the approval of a spot Ether ETF from Grayscale, while also allowing for public comments on the application. In the wake of spot Bitcoin ETF approvals on January 10, there has been growing doubt among commentators in the crypto industry about whether the SEC will adopt a stricter stance on ETFs based on cryptocurrencies.
It was recently reported that Capital founder John Lo expects the SEC to put increased scrutiny on all upcoming crypto-based ETFs, especially Ether ETFs: “Scrutiny towards cryptocurrency ETFs has only grown, as you could argue to a certain degree that the SEC was forced to approve the Bitcoin ETFs because of its case with Grayscale. No doubt, the SEC internally views that as a huge loss for themselves.”
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Meanwhile, other asset management firms are encountering hurdles with their Ethereum ETFs. On March 4, the SEC disclosed in separate filings that it would postpone its decision on applications from BlackRock for its iShares Ethereum Trust and Fidelity for its Ethereum Fund. This delay suggests a broader trend of regulatory caution surrounding Ethereum-based investment products within the asset management industry.
