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CDS Crypto News Grayscale’s Ether Futures ETF Faces Delay in SEC Approval

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Grayscale’s Ether Futures ETF Faces Delay in SEC Approval

The U.S. securities regulator has pushed back its decision on the approval of Grayscale's Ethereum Futures Trust ETF product, now slated for the end of May.

Ecem EFE23/03/20241 Mins read183

Grayscale's Ether Futures ETF Faces Delay in SEC Approval

Crypto News- The United States Securities and Exchange Commission (SEC) has once again pushed back its decision deadline concerning Grayscale’s Ethereum (ETH) Futures Trust exchange-traded fund (ETF).

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In an announcement made on March 22, the SEC revealed its decision to extend the deadline from March 31 to May 30. This additional time will allow the commission to thoroughly review Grayscale’s proposal for the Ethereum Futures Trust ETF, which primarily focuses on Ethereum futures contracts.

Grayscale’s Ether Futures ETF Faces Delay in SEC Approval

In their statement, the SEC justified the extension, citing the need for ample time to carefully consider the proposed rule change and all related issues before issuing a verdict.

This extension marks yet another delay in the approval process for Grayscale’s futures ETF. Initially proposed in September 2023, the ETF faced a postponement in December 2023, as the SEC sought further public input on the matter.

Notably, Bloomberg ETF analyst James Seyffart has voiced concerns, suggesting that Grayscale might be leveraging its futures ETF application to influence the SEC’s decision regarding its spot Ether ETF. Seyffart believes that approving the futures ETF could pave the way for the spot Ether ETF’s approval as well.

Spotlight on SEC: Implications of Bitcoin ETF Approval on Crypto-Based ETFs

The SEC’s decision-making process regarding crypto-based ETFs has garnered heightened attention since the approval of spot Bitcoin ETFs in January 2024. There is growing speculation within the crypto industry about the SEC’s stance on similar products, with some anticipating increased scrutiny.

John Lo, founder of Capital, predicts that the SEC will subject upcoming crypto-based ETFs, particularly Ether ETFs, to more stringent scrutiny. Lo suggests that the approval of Bitcoin ETFs might have influenced the SEC’s approach to these products.

Grayscale is not the only firm facing hurdles with Ethereum ETF proposals. The SEC has also delayed decisions on applications from BlackRock and Fidelity for their respective Ethereum-related funds, reflecting a broader trend of regulatory caution in the crypto ETF space.