The U.S. Securities and Exchange Commission has delayed a decision on Grayscale Ethereum Futures Trust’s Ethereum ETF application, setting a new deadline for May 30, as per a document filed on Friday. This comes under the Securities Exchange Act of 1934, allowing the agency 180 days to review such applications after the initial filing. Grayscale first submitted its application in September, with the SEC deferring a decision in November.
The ETFs for Bitcoin and Ethereum are investment funds that mirror the price movements of the respective digital assets and are traded on traditional stock exchanges. While spot ETFs track current prices in real-time, futures ETFs focus on future price movements. After approving 11 Bitcoin ETFs in January, the SEC postponed decisions on spot Ethereum ETF applications from Grayscale and BlackRock, as well as a joint spot Ethereum ETF application from Invesco and Galaxy Digital the following month.
Despite disappointments among crypto investors due to the delay in Grayscale’s Ethereum futures ETF decision, some experts believe the postponement may benefit the market. Bitwise Chief Information Officer Matt Hougan suggested that traditional financial institutions may need more time to digest Bitcoin ETFs before fully embracing spot Ethereum ETFs.
The SEC’s postponement has contributed to a downward trend in the price of Ethereum, which saw a 10.4% decline over the week and is currently valued at $3,289, according to Coingecko. The delay in regulatory decisions like this may impact market sentiments and price movements in the short term.
