The U.S. Securities and Exchange Commission (SEC) grayscale's suggestion Spot Ethereum ETF. The SEC extended the review period until June 23. The ruling means a further delay in the approval process for crypto-based ETFs in the United States.
Grayscale filed a Form 19b-4 with NYSE Arca in October approving the transition from its current Ethereum Trust to a Spot ETH ETF. In January, Grayscale launched Bitcoin Trust. Spot Bitcoin ETF.
Grayscale faces Ethereum ETF approval delay
of SEC decision The postponement is subject to further concerns and amendments being considered in relation to this proposal. Regulators said the fix would require a longer period of time to evaluate and resolve the issue. The revised proposal has undergone comprehensive scrutiny to ensure compliance with all regulatory requirements.
This problem is not specific to grayscale. Other asset managers have seen similar filings delayed by the SEC. It is worth noting that franklin templetonThe application has been postponed until June 11th. Other major companies such as BlackRock, Fidelity and VanEck have also been postponed.
SEC suspends Ethereum ETF operations amid concerns
In response to the latest actions taken by the SEC, Grayscale has taken another step to improve its applications. The Company has filed Form S-3 pursuant to U.S. securities laws to further its activities related to the offering of the Ethereum ETF. These steps highlight Grayscale's dedication to gaining approval.
The delay in approval of the Spot Ethereum ETF is evidence of continued regulatory concerns. Analysts say adding staking functionality to some applications could cause problems. SEC Chairman Gary Gensler emphasized that most crypto assets are securities. This view may influence the SEC's cautious approach to these ETFs.
However, the crypto ETF market has witnessed a tremendous amount of activity even while facing setbacks. Since the Spot Bitcoin ETF was approved, cumulative net inflows of over $12 billion have been reported. In contrast, Grayscale's Bitcoin Trust has seen huge outflows, with its amount under management decreasing by 50% during this week.
Also read: SEC opens comment period for revised version of BlackRock Ethereum ETF
