The deadline for the approval of Grayscale’s Ethereum Futures Trust ETF by the United States Securities and Exchange Commission (SEC) has once again been extended. The SEC announced in a filing on March 22 that it would postpone the decision until May 30. The ETF focuses on investing in Ether futures contracts.
In December 2023, the SEC delayed the approval date for Grayscale’s futures ETF product in order to gather additional public input on whether it should be listed. This came just three months after Grayscale proposed listing and trading shares of the Grayscale Ethereum Futures Trust ETF under the New York Stock Exchange Arca Rule 8.200-E.
Bloomberg ETF analyst James Seyffart speculated that Grayscale was using its futures ETF application as a way to influence the SEC’s decision on its spot Ether ETF. If the SEC approves the application, it would strengthen Grayscale’s argument for the approval of its spot Ether ETF application.
On January 25, the SEC also delayed its decision on Grayscale’s spot Ether ETF and opened the application to public comments. There has been increased skepticism among industry commentators about whether the SEC will take a tougher stance on crypto-based ETFs, following the approval of spot Bitcoin ETFs on January 10.
Capital founder John Lo expects the SEC to scrutinize upcoming crypto-based ETFs, particularly Ether ETFs. Other asset management firms, such as BlackRock and Fidelity, are also facing delays in the approval of their Ethereum ETF applications.
According to a Bloomberg analyst, the SEC’s lack of communication on the Ethereum ETF is concerning and may not bode well for its approval.