The US Securities and Exchange Commission (SEC) has decided to postpone Grayscale’s Ethereum ETF application.
The SEC shared in the announcement they posted on Tuesday, March 20, stating that the large financial institution Grayscale has postponed the spot Ethereum exchange-traded fund (ETF) application to May 30, 2024:
The Commission has determined that it is appropriate to designate a longer period within which to take action on the proposed rule change and the matters here, in order to provide adequate time to consider the proposed rule change and the issues raised herein.
It was recently announced that the regulatory body had also postponed its decision on spot Ethereum ETF applications submitted by Hashdex and Ark 21Shares.
Fidelity and BlackRock, global financial giants, applied for a spot Ethereum ETF, but SEC’s recent cold and reserved stance rapidly reduced expectations for an approval in May.
Senior ETF analysts at Bloomberg recently announced that the likelihood of approval for a spot Ethereum ETF in May has been reduced from 70% to 30%.
Considering Ethereum to be a security rather than a commodity, the SEC recently initiated an investigation into the Ethereum Foundation.
