On March 22, the U.S. Securities and Exchange Commission (SEC) once again postponed its decision on Grayscale's application to list an Ethereum futures exchange-traded fund (ETF).
The SEC has until May 30 to make a final decision, but last December it asked for public comment on whether Ethereum's proof-of-stake (PoS) consensus mechanism could lead to fraud or manipulation. The decision was also postponed.
Interestingly, last December, the SEC approved ProShares, VanEck, and Bitwise's application to list an Ethereum futures ETF. In addition to the futures ETF application, Grayscale is also currently applying to convert its Ethereum mutual fund into a spot ETF, similar to how it was recently approved to convert its Bitcoin mutual fund (GBTC) in January.
Commenting on Grayscale's concurrent filing strategy, Bloomberg ETF expert James Seifert expressed doubts about Grayscale's genuine interest in launching a futures ETF, saying this could lead to a “trojan's failure” to obtain specific orders from the SEC. He suggested that it may have been a wooden horse. Seifert also noted that a disapproval of either the Ethereum Futures ETF or the Spot ETF would be negative for the SEC.
In its previous battle with the SEC over Bitcoin ETFs, Grayscale argued in court last year that the SEC's stance on spot ETFs, which do not meet standards despite the existence of Bitcoin futures ETFs, was “unfair.” insisted.
The court ordered a reconsideration of the case and ultimately approved 10 ETFs in January.
Meanwhile, reports this week suggested that the SEC is investigating the Ethereum Foundation, raising concerns that Ethereum could be considered a security.
