The United States Securities and Exchange Commission (SEC) has decided to further delay the decision on approval of the application from Grayscale for an Ethereum alternate trading product (ETP) as the exchange-traded fund (ETF).
The SEC has filed a document to tell the public that its review period will be extended to May 30, 2024, justifying that there are more technicalities to be studied to give appropriate recommendations.
This happened after several consecutive extensions, and at the end of last year, the SEC requested some more public comments in December. Analysts had foreseen such a delay, as Bloomberg ETF analyst James Seyffart remarkably indicated that Grayscale might purposefully do that to obtain a 19b-4 order rather than hastily bring an ETF.
The greyscale approach, hence, acts as a temporary measure before spot Ethereum ETFs secure the approval of many institutions that have filed the products just recently. Despite that, there is still hope that the product will gain acceptance.
Also Read: SEC Delays Decision on VanEck’s Ether ETF Application
