SEC delays making a decision on spot Ethereum ETF proposals from Franklin Templeton, Grayscale
Quick Take The agency pushed its timeline to make a decision to June 11, 2024, after which the SEC could approve or disapprove or institute proceedings. The SEC also delayed making a decision on a spot Ethereum ETF proposal from Grayscale. Optimism for a spot Ethereum ETF has fallen over the past few months.
The U.S. Securities and Exchange Commission is delaying making decisions on the next steps for two proposed spot Ethereum exchange-traded funds proposed by Grayscale and Franklin Templeton.
The agency pushed its timeline to decide to June 11, 2024 for the Franklin Ethereum ETF after which the SEC could approve or disapprove or institute proceedings, the SEC said in a filing on Tuesday.
"The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein," the SEC said.
Franklin Templeton filed its S-1 registration statement for the Franklin Ethereum ETF in February. The fund would generally reflect the price of ether and Coinbase Custody Trust Company and the Bank of New York Mellon would be the custodians, the firm said.
The SEC also delayed a similar proposal for the Grayscale Ethereum Trust on Tuesday.
Grayscale filed a Form 19b-4 alongside NYSE Arca in October to convert the Grayscale Ethereum trust to a spot ether ETF. Grayscale has also previously filed to convert its Grayscale Bitcoin trust to a spot bitcoin ETF, which it did successfully after a court victory and eventual approval from the SEC in January.
The SEC set its next deadline to decide whether to approve or disapprove of Grayscale's Ethereum spot ETF to June 23, 2024, according to Tuesday's filing.
The SEC has delayed decisions on applications for other Ethereum ETFs including VanEck 's spot Ethereum ETF and one from BlackRock .
Big-name firms, including Fidelity and BlackRock , have applied for a spot ether ETF over the last few months. Optimism for the SEC approving such a product has steadily fallen over the past few months. For example, Bloomberg ETF analyst Eric Balchunas has lowered his estimate of the chances of a spot Ethereum ETF approval by May from about 70% to 30%.
Since being listed in January 2024, U.S.-traded spot bitcoin ETFs have brought in a cumulative total net inflow of $12.38 billion, The Block previously reported .
Updated on April 23 at 5:10 p.m. UTC time to include filing from Grayscale
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Mars Morning News | BTC sees heavy turnover and high-volume bottoming structure, a typical short-term bottom signal
Cardano experienced a brief chain split due to an old code vulnerability, with the FBI launching an investigation; BTC is showing short-term bottom signals; Port3 suffered a hacker attack causing its token price to plummet; Aave launched a retail savings app to challenge traditional banks. Summary generated by Mars AI. This summary is produced by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

This Week's Preview: BTC Returns to 86,000, Trump’s Epic Showdown with Major Shorts, Macro Turmoil Just Settled
After last week's global market panic and subsequent recovery, bitcoin rebounded to $86,861. This week, the market will focus on new AI policies, the standoff between bears and bulls, PCE data, and geopolitical events, with intensified competition. Summary generated by Mars AI. The accuracy and completeness of this summary, produced by the Mars AI model, are still being iteratively improved.

At risk of being removed from the index? Strategy faces a "quadruple squeeze" crisis
Strategy is facing multiple pressures, including a significant narrowing of mNAV premiums, reduced coin hoarding, executive stock sell-offs, and the risk of being removed from indexes. Market confidence is being severely tested.

VIPBitget VIP Weekly Research Insights

