SEC Delays BlackRock and Grayscale Spot ETH ETF Verdicts

The United States Securities and Exchange Commission (SEC) has opted for a delay in its verdict concerning the BlackRock and Grayscale applications for spot Ether (ETH) exchange-traded funds (ETFs). This announcement comes on the heels of a similar delay in Franklin Templeton’s proposal for a spot ETH ETF.

Grayscale’s Wait Extended

Grayscale, a prominent digital asset manager, had anticipated the SEC’s decision on converting its ETH Trust into a spot ETH exchange-traded product on NYSE Arca by April 24. However, the SEC has extended the timeframe by 60 days, pushing the new deadline to June 23.

In a statement released on April 23, the SEC expressed the need for additional time to evaluate the proposed rule change. “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 1,” the agency stated. This delay follows the agency’s publication of Grayscale’s amendment filing on April 2, which aimed to bolster its case without altering the core proposal.

In a similar vein, BlackRock’s application for spot Ethereum ETFs has been modified by the SEC in its review process. Not long after the Franklin Templeton application was postponed, the agency decides to review the application. As of right moment, the SEC wants to decide on the BlackRock application by June 11.

The regulatory hurdles surrounding the bitcoin business are highlighted by this string of delays. Regulatory organizations like the SEC are faced with the difficult task of striking a balance between innovation and investor safety as institutional interest in digital assets grows. Even some industry participants may find these delays frustrating, they also show how carefully new financial products are considered in the rapidly changing world of digital assets.