BlackRock, Grayscale have to wait for SEC’s spot ETH ETF decisions

The SEC has announced that it will postpone making decisions on BlackRock’s and Grayscale’s applications for Ether (ETH) ETFs. The SEC revealed this decision in relation to Grayscale’s application and an amendment to BlackRock’s application, both occurring shortly after the SEC delayed its verdict on Franklin Templeton’s proposed ETH ETF.

The SEC’s ruling on transforming Grayscale’s Ethereum Trust into an ETP for trading Ethereum directly on the NYSE Arca has been delayed. Instead of being finalized on April 24, this process will now take an additional 60 days, meaning it will be completed by June 23.

The Commission decided to give themselves more time to review and make a decision on Grayscale’s proposed rule change, as amended on the first of April, in order to thoroughly consider the modified proposal. (Agency notice dated April 23)

The SEC is now expected to make a decision on the Franklin Templeton application by June 11.

On April 23rd, Grayscale submitted two forms: A shorter S-3 form for the Grayscale Ethereum Trust, and a longer S-1 form for the Grayscale Ethereum Mini Trust.

BlackRock, Grayscale have to wait for SEC’s spot ETH ETF decisions

In November, BlackRock submitted an S-1 form to launch a spot Ethereum ETF. However, the SEC’s review of their application was postponed in March. Similarly, the SEC announced that it would defer decisions on Hashdex and ARK 21’s spot Ethereum ETF applications until late May, which is two months later than initially planned.

On April 19, BlackRock submitted an amended application to the SEC. The SEC’s notice, published on April 23, outlines the modifications made in the amendment, focusing primarily on the procedures for issuing and redeeming shares. Additionally, the comment period for public feedback was extended by three weeks following the Federal Register publication. No new date for the SEC’s decision was provided.

BlackRock, Grayscale have to wait for SEC’s spot ETH ETF decisions

According to onlookers, the Securities and Exchange Commission (SEC) appears to be disregarding the ongoing Ethereum ETF proposal submissions, which some believe is an indication of an upcoming rejection.

In August, the appeals court granted Grayscale a partial win against the SEC as it ruled in favor of Grayscale’s appeal to transform its Grayscale Bitcoin Trust (GBTC) from an over-the-counter product into a listed Bitcoin (BTC) Exchange-Traded Fund (ETF) that the SEC had previously rejected.

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2024-04-24 01:08