As the ETF mania continues to rock the crypto markets, the US Securities and Exchanges Commission (SEC) just recently announced a postponement of 45 days on the decision regarding Grayscale Investments’ application for a spot Ethereum ETF.
Grayscale Spot Ethereum ETF Decision
This spot Ethereum ETF decision has been moved to later in January, on 25th 2024. Per SEC, this extension will give space for adequate consideration of the proposed rule change and the issues it raises.
While referencing the spot Ethereum ETF, the SEC statement actually says:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
Per the document, the proposal under consideration was published on Oct 27. This document also outrightly states Jan 25 as the date to either approve or disapprove or begin the process of determining whether to disapprove the rule change.
When talking about the developments, James Seyffart, a Bloomberg Intelligence analyst, mentioned that such a delay is normal and ‘expected.’ James also highlighted his prediction on the final SEC deadline for the ETF, which is Jun 18 2024.
The Race for Spot ETFs
Last month, Grayscale staff and the SEC discussed the conversion of the network’s Bitcoin Trust into a spot ETF. In fact, reports indicate that in preparation, Grayscale updated the trust’s agreement, something last done in 2018.
The SEC has also postponed its verdict on Hashdex’s application to launch a Bitcoin spot ETF to Jan 1, 2024.
This ongoing ETF mania has been powering up cryptocurrency markets in recent days. In just the past fortnight, Bitcoin has moved from a low of $35.7K to the current price range of $44K owing to the ETF frenzy.
Per analysts, the earliest BTC spot ETF approval will be in early January 2024. Once approved, analysts, including Galaxy Digital’s Mike Novogratz, believe Bitcoin will surge to old highs.