The U.S. Securities and Exchange Commission (SEC) continues to keep everyone guessing as it extends the deadline for making a call on Ethereum-based Exchange Traded Funds (ETFs), pushing the decision date further by a month.
With the deadline for Ethereum ETFs looming on May 23rd, nerves are on edge, especially regarding Grayscale Investments’ efforts to turn its Ethereum Trust into a spot ETF.
Read more about it below.
The SEC’s silence is deafening, offering little insight into the fate of the issuers’ applications. Many speculate that denial might be on the cards, a sentiment echoed by Fox Business journalist Eleanor Terrett.
“As has been widely reported, the consensus is that because there has been little to no meaningful engagement from SEC staff on the issuers’ applications, that they will ultimately deny on May 23rd,”
This sentiment underscores a broader uncertainty and prevalent skepticism among crypto community members about the SEC’s pending decision. Last month, Bloomberg ETF analyst Eric Balchunas said there’s “a very pessimistic 25%” chance of approval of Spot Ethereum ETFs.
Terret reported that “It’s not looking very promising,” one issuer expressed, while another pointed out that necessary conversations have not occurred at this critical juncture.
Did You Know? Will SEC Declare Ethereum As Security? Legal Expert Weigh-In
Amidst the uncertainty, Grayscale Investments isn’t sitting idle. Shortly after Terrett’s tweet, the investment firm announced a significant step towards Ethereum ETF approval.
In their press release, they announced,
“Today, we filed a registration statement on Form S-3 to register shares of Grayscale Ethereum Trust (OTCQX: $ETHE) under the Securities Act of 1933. This is another important step toward uplifting ETHE as an ETF,”
Read More: Grayscale Pushes for Spot Ethereum ETF Approval with New Ethereum Mini Trust
Despite these concerns, some remain hopeful, clinging to the similarities between the Ethereum ETFs and previously proposed Bitcoin ETFs and betting on the quick resolution of staking-related issues.
Despite the doubts, the similarities between Ethereum ETFs and their Bitcoin counterparts fuel optimism. However, with the SEC’s decision looming, any surge in Ether prices seems unlikely, contrary to the anticipation preceding Bitcoin ETF approvals.
Will May 23rd mark the dawn of a new era for Ethereum ETFs, or will the wait continue? Stay tuned!
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