SEC Extends Deadline for Decision on Grayscale’s Spot Ethereum ETF

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

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

SEC Delays Spot Ethereum ETF Decision

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

Following the asset manager’s application, the New York Stock Exchange (NYSE) Arca submitted a proposed rule change with the SEC to list and trade shares of the crypto product on its platform. In turn, the U.S. regulator published the proposed rule change for comment from the public in late October.

As the period for public comments has ended, the SEC has decided to designate a longer period to determine if the proposed rule change allowing the NYSE Arca to list the shares of the ETHE 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 time period. The Commission finds it 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.

Grayscale Updates GBTC Framework

There remains a possibility that the SEC may decide to institute proceedings to determine whether to disapprove the proposed rule change by 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 spot Bitcoin ETF, with several asset managers, including Grayscale, in the race.

Grayscale recently enhanced the framework of its agreement for the Grayscale Bitcoin Trust (GBTC) in preparation for its potential conversion to a spot Bitcoin ETF. The adjustment aims to ensure fair competition with other spot Bitcoin ETF contenders like BlackRock, Ark Invest, Fidelity, and VanEck.

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