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The Securities and Exchange Commission (SEC) has once again delayed its decision on approving the proposed Grayscale Ethereum Futures Trust exchange-traded fund (ETF), according to a recent filing.
In a document submitted late on Friday, the SEC announced that it would extend the review period until May 30, 2024, before making a determination on Grayscale’s ether futures ETF.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” stated the agency in the filing.
Bloomberg ETF analyst James Seyffart commented that the delay was anticipated. Seyffart previously suggested that Grayscale’s strategy is to navigate regulatory hurdles strategically, aiming for eventual approval of a spot Ethereum ETF.
“I doubt Grayscale even intends to launch this. It’s nothing but a trojan horse to get a 19b-4 order from the SEC,” Seyffart expressed in November. “And watch them try to either approve and argue why this is different from spot. Or Deny and argue why 1933 act products are meaningfully different from 1940 act products. Both are bad for SEC IMO. Genius move IMO.”
The SEC has postponed its consideration of Grayscale’s ether futures ETF multiple times before, with the most recent delay occurring in December when the agency requested public comments.
Meanwhile, the cryptocurrency industry has been eagerly awaiting the approval of a spot ether ETF, offering investors exposure to the cryptocurrency without directly owning it.
Major financial institutions like Fidelity and BlackRock have sought approval for the spot product in recent months. However, optimism for SEC approval has waned in recent weeks. Bloomberg ETF analyst Eric Balchunas has revised down his estimate of the likelihood of a spot Ethereum ETF approval by May, dropping it from about 70 percent to 30 percent.
