The U.S. Securities and Exchange Commission (SEC) has communicated a postponement in its decision-making process for the Grayscale Ethereum futures exchange-traded fund (ETF). Grayscale Investments, a major player in the digital asset management sector, submitted the ETF request in September, aiming to provide investors with exposure to the anticipated future price movements of Ethereum.
Known for routinely extending timelines for crypto-related product decisions, the SEC clarified that it needs additional time to thoroughly assess the proposed changes in regulations and address related issues. While Grayscale's application revolves around an ETF tied to Ethereum futures, the SEC is currently managing a backlog of spot Bitcoin ETF applications, including those from significant Wall Street players such as BlackRock.
Despite persistent investor demand for a Bitcoin ETF, the SEC has consistently rejected previous applications, citing concerns about potential market manipulation. However, Ethereum futures ETFs made their recent debut in the U.S. market, with several firms introducing a total of nine products on the Chicago Board Options Exchange (CBOE) just last month.
Grayscale has actively been in discussions with the SEC, previously taking legal action against the regulator over its rejection of a spot Bitcoin ETF application. Despite these delays, analysts from Bloomberg Intelligence project a 90% likelihood of the SEC approving a Bitcoin ETF in the U.S. by January 10, 2024.
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