- The SEC delayed its decision on Grayscale’s proposed spot ether ETF, extending the timeline to January 25, 2023.
- Grayscale filed to convert its existing $5 billion Grayscale Ethereum Trust into an ETF in October 2022, which would be the first US spot ether ETF.
- The SEC said it needed more time to consider the proposed fund, which was an expected delay according to industry experts.
The Securities and Exchange Commission (SEC) has delayed making a decision on whether to approve Grayscale‘s proposed spot ether exchange-traded fund (ETF). The SEC extended the timeline for a decision by 45 days to January 25, 2023.
Background on Grayscale’s Proposed ETF
Grayscale Investments filed a form in October 2022 to convert its existing Grayscale Ethereum Trust into a spot ETF. The trust was launched in 2019 and became an SEC reporting company in 2020. It currently has nearly $5 billion in assets under management, representing 25% of all ether in circulation.
If approved, it would be the first spot ether ETF in the US. The SEC has yet to approve any spot crypto ETFs, despite multiple applications.
SEC’s Reasoning for the Delay
In a filing on Tuesday, the SEC said it needed more time to consider the proposed fund and issues related to it. “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 filing stated.
Industry Expectations on the Delay
The delay was expected by many in the crypto industry. “As expected, Grayscale’s Ethereum trust filing just got delayed,” said Bloomberg Intelligence analyst James Seyffart on Twitter. He noted that the deadline for a decision was December 6, so this extension is normal procedure.
Other firms like BlackRock and Bitwise have also filed for spot bitcoin ETFs and are awaiting decisions from the SEC. The regulator delayed decisions on some of those filings this week as well.