surrounding enthusiasm Ethereum (CRYPTO: ETH) Exchange-traded funds (ETFs) continue to build, especially after multiple successful launches. Bitcoin (CRYPTO:BTC) ETF from the beginning of this year.
However, the Ethereum ETF's path to approval continues to face regulatory scrutiny, with the U.S. Securities and Exchange Commission (SEC) engaging in a detailed vetting process with prospective issuers.
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Grayscale strengthens efforts with revised S3 prospectus
Despite facing regulatory headwinds, grayscaleThe leader in digital currency asset management is not slowing down its push for the Spot Ethereum ETF.
The company manages approximately $10.87 billion in Ethereum Trust (OTCQX:ETHE) and recently renewed its registration via an S3 prospectus with the aim of elevating ETHE to NYSE Arca status.
This filing is an important move to move the trust into an ETF format that is more accessible to investors.
“Today, we filed new regulatory filings that further expand our product suite,” Grayscale said, highlighting its commitment to providing investors with access to Ethereum in a regulated framework. I reconfirmed.
However, the SEC's decision was postponed until June 11, 2024, as the SEC needs more time to consider the complexities of such financial instruments.
Also read: $31.6 million net inflows into Bitcoin Spot ETF as Hong Kong prepares to launch ETF
BlackRock stays on track amid regulatory uncertainty
Similarly, BlackRock has amended its 19b-4 filing and continues to pursue an Ethereum ETF. However, analysts remain cautious about their outlook.
“This is highly unlikely to facilitate approval.” said james seifertETF analysts at Bloomberg Intelligence suggest there is only a 25% chance of a favorable decision by the previously expected May 23 deadline.
The SEC's hesitation has sparked widespread concern in the financial community about the likelihood of Ethereum ETF approval in the near term.
analyst of JP Morgan They estimate the chance of approval by the May deadline is less than 50%.
In contrast, GSR analysts brian ruddick The odds have dropped significantly from an initially optimistic 75% to 20%.
Industry reaction to delays
Ongoing delays and intense scrutiny from the SEC have sparked significant commentary among industry experts.
“It looks like a final push to get the SEC's attention, although it will likely be in vain.” Said ETF specialist Eric Balchunashighlighted a general sense of pessimism that has persisted since the initial campaign against crypto ETFs.
Benzinga's Future of Digital Assets Event
The discussion and development surrounding Ethereum ETFs continues to unfold and will definitely be a hot topic at Benzinga's upcoming Future of Digital Assets event on November 19th.
Read next: Binance founder Changpeng Zhao apologizes, Justice Department seeks 3 years in prison
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