The Grayscale Ethereum Futures ETF application has been delayed because the SEC decided to extend its own deadline.
A September filing by Grayscale Investments with the appropriate Wall Street agency. Ethereum (ETH) is the second-largest digital currency by market value, and the fund would enable investors to acquire shares that gamble on the future price of ETH.
However, the SEC said today that it would be postponing its choice. The SEC often requests more time before it must issue rulings on crypto products.
The agency finds it reasonable to designate a longer period within which to take action on the suggested rule change so that it has enough time to consider the suggested rule change and the issues raised therein,” according to the SEC’s filing.
It is now considering a number of requests for spot Bitcoin ETFs. Numerous prominent Wall Street corporations, including BlackRock, have formally requested the release of their own product from the regulator.
The value of an underlying asset may be tracked by investing in an ETF, which is a common investment instrument. For the better part of a decade, Bitcoin ETFs have been requested by investors, but the SEC has consistently denied the request, citing worries about market manipulation.
The first Ethereum futures ETF began trading on the Chicago Board Options Exchange (CBOE) last month, with the introduction of nine products from businesses like ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares.
In June, Grayscale filed a lawsuit against the SEC for rejecting its application, and in August, the judge who heard the case sided with the company by ordering a reconsideration of the SEC’s decision to reject Grayscale’s spot Bitcoin ETF application.
The application to convert Grayscale’s Ethereum trust into an ETF was also submitted in October. Since then, Bloomberg Intelligence analysts have predicted that by January 10th, the U.S. stock market would provide a Bitcoin exchange-traded fund (ETF).
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