SEC Postpones Decision on Ethereum ETF Once More, Aiming for May 2024 Review

The SEC has postponed its verdict on the Ethereum futures ETF by Grayscale, setting a new deadline of May 30, 2024.

This decision comes amidst broader anticipation for an ETF that would allow investors to gain Ethereum exposure indirectly, bypassing the need for direct purchase.

In a recent announcement, the Securities and Exchange Commission (SEC) revealed its decision to extend the review period for Grayscale's proposed Ethereum futures ETF.

The delay, according to the SEC, is to allow more time for thorough consideration of the proposal and related concerns.

Bloomberg's ETF analyst James Seyffart predicted this delay, suggesting Grayscale's strategy is more sophisticated than it appears.

Seyffart believes Grayscale isn't necessarily aiming to launch this ETF but rather to use it strategically to challenge the SEC's stance and push for the approval of a spot Ethereum ETF.

This is not the first time the SEC has extended its review of Grayscale’s Ethereum futures ETF, with a previous extension announced in December, seeking public input.

However, in contrast, the SEC had approved several ether futures ETFs from other firms like ProShares, VanEck, and Bitwise in October 2023.

The industry has been keenly interested in spot ether ETFs, which offer a direct investment opportunity in Ethereum without the complexities of managing cryptocurrency directly.

Major financial entities, including Fidelity and BlackRock, have submitted applications for such ETFs. However, optimism for an SEC approval has diminished, with predictions for a green light in May dropping significantly.