SEC Delays Grayscale's Ethereum Trust Conversion to ETF; Timeline Points to Potential Approvals

SEC delays decision on Grayscale’s Ethereum trust conversion to a spot ETF to January 25, 2024.
Delays are considered normal in the ETF approval process.
Experts suggest potential Ethereum ETF approvals by mid-2024.

The journey towards the approval of an Ethereum ETF in the United States has seen a new development, with the US Securities and Exchange Commission (SEC) announcing a delay in the decision for Grayscale’s Ethereum trust conversion into a spot Exchange Traded Fund (ETF). The SEC cites the need for additional time to evaluate the proposed rule change, setting a new deadline for Grayscale to January 25, 2024.

The SEC has justified the delay by stating the necessity for an extended period to thoroughly assess the proposed rule change and the related issues. This extension comes at a time when the SEC is working with 13 spot Bitcoin ETF applicants on anticipated final amendments before the January 10 approval deadline.

Timeline for a Spot Ethereum ETF Approval

Despite the delay, the cryptocurrency community remains optimistic about the prospects of spot Ethereum ETFs. Bloomberg ETF analyst James Seyffart emphasizes that such delays are a common part of the process. He provides a timeline of all seven spot Ethereum ETF applicants and their respective deadlines, hinting at potential approvals by mid-2024.

The upcoming cETF deadlines range from December 23 to 26 for applicants like VanEck, Ark Invest, Invesco & Galaxy, and Hashdex. Given the unlikelihood of a spot Bitcoin ETF approval by then, SEC delays are expected for this batch of filings.

BlackRock’s iShares and Fidelity Ethereum Fund face deadlines on January 25 and January 21, 2024, respectively. These dates are pivotal and could involve extensions, requests for additional information, or final decisions.

As the timeline progresses, the tension mounts toward the final deadlines for all Ethereum ETF filers. VanEck and ARK Invest are poised for potential approvals by May 23 and May 24, 2024, respectively, with other notable filers like Hashdex Nasdaq Ethereum ETF and Grayscale’s Ethereum Trust Conversion (ETHE) scheduled for decisions by May 30, 2024, and June 18, 2024. The stage is set for potential approvals, and the cryptocurrency community eagerly anticipates the SEC’s decisions.