Amendments are slowing down SEC decisions for both BlackRock and Grayscale, despite experts indicating the agency’s limited involvement. The SEC will delay rulings on BlackRock and Grayscale’s spot Ethereum (ETH) exchange-traded fund (ETF) applications, each valued at $3,229.
The SEC announced delays in deciding on Grayscale’s application and in making amendments to BlackRock’s application just hours after postponing a decision on Franklin Templeton’s proposed spot Ethereum ETF.
SEC Extends Deadline for Grayscale’s ETH Trust Conversion
The Securities and Exchange Commission (SEC) was set to announce its decision regarding the conversion of Grayscale’s ETH Trust to a spot ETH exchange-traded product on NYSE Arca by April 24. However, this deadline has now been pushed back by 60 days to June 23.
In its notice on April 23, the SEC stated that it requires more time to evaluate the proposed rule change, especially after Grayscale’s filing of Amendment No. 1, which was published on April 2. Although the amendment strengthened Grayscale’s arguments, it did not substantially alter its proposal.
Additionally, the SEC is expected to reach a decision on the Franklin Templeton application by June 11.
On the same day, April 23, Grayscale filed an S-3 form for a Grayscale ETH Trust and an S-1 for a Grayscale ETH Mini Trust, indicating further developments in the cryptocurrency investment realm.
SEC notice of filing of BlackRock amendment. Source: sec.gov
Spot ETH ETF Applications Face Delays and Uncertainty
In November, BlackRock filed an S-1 application for a spot Ethereum (ETH) ETF. However, the decision on BlackRock’s application was postponed in March. Later that same month, the Securities and Exchange Commission (SEC) delayed decisions on Hashdex and ARK 21 spot ETH ETF applications by two months, now expected in late May.
On April 19, BlackRock submitted an amendment to its application. In response, the SEC issued a notice on April 23 outlining the changes introduced in the amendment, primarily focusing on the creation and redemption of shares. The notice also extends the comment period on the proposal for 21 days after its publication in the Federal Register. However, no new deadline for an SEC decision was specified.
Source: Eleanor Terrett
Observers suggest that the SEC’s apparent disengagement with spot ETH ETF applications may indicate a looming rejection.
In a separate development, Grayscale secured a victory over the SEC in August when an appeals court partially overturned the SEC’s rejection of its application to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin (BTC) ETF.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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