The U.S. Securities and Exchange Commission (SEC) is still delaying a final decision on a proposed Ethereum-based exchange-traded fund (ETF), even after extending it by a month.
As the SEC's Ethereum ETF decision deadline approaches on May 23, the atmosphere is filled with anxiety and speculation, especially regarding efforts by giant Grayscale Investments to transition its Ethereum Trust into a spot ETF. There is.
“I don't think there's much hope.”
“As has been widely reported, there was little to no meaningful engagement from the SEC staff regarding the issuer's application, and the consensus is that the issuer will ultimately reject it on May 23.” FOX Business journalist Eleanor Tellet told X.
This sentiment highlights the widespread uncertainty and pervasive skepticism among members of the crypto community about the SEC's pending decision. Last month, Bloomberg ETF analyst Eric Balchunas said,Very pessimistic 25%Potential for Spot Ethereum ETF to be approved.
The Telet newspaper reported that one publisher said it was “not very encouraging”, while another said the necessary dialogue was not taking place at this critical juncture.
Grayscale update S-3 form
Within an hour and a half of Eleanor Tellet’s Insider Tweet, Grayscale Investments issued a press release announcing an important step in the Ethereum ETF approval process.
“Today, we filed a registration statement on Form S-3 to register the shares of Grayscale Ethereum Trust (OTCQX: $ETHE) under the Securities Act of 1933, as an ETF. “This is another important step towards increasing the .
The company's Form S-3 filing, along with an earlier Form 19b-4 filed by NYSE Arca, aims to transform the Ethereum Trust into a spot ETF. This application has not yet been released to the public. Additionally, Grayscale emphasized that the shares will soon be sold by prospectus only.
What's next?
Despite these concerns, those who hold onto the similarities between the Ethereum ETF and previously proposed Bitcoin ETFs and bet on a quick resolution to staking-related issues remain hopeful.
With only a month left until the SEC's decision, it is most unlikely that Ether prices will skyrocket as they did before the Bitcoin ETF was approved due to the prevailing negative bias.
