SEC Delays Approval of Immediate Ethereum ETF

[TomPluz]

The SEC has postponed its decision on Grayscale's Immediate Ethereum ETF until June 23 amidst careful review of cryptocurrency ETF applications.

The U.S. Securities and Exchange Commission (SEC) has decided to further delay the proposal by Grayscale regarding an Ethereum ETF for immediate trading. The review deadline has been extended to June 23. This delay indicates a setback in the approval process for cryptocurrency-based ETFs in the U.S.

Grayscale submitted Form 19b-4 to NYSE Arca in October to convert its existing Ethereum Trust into an ETH ETF for immediate trading. In January, Grayscale successfully converted its Bitcoin Trust into a Bitcoin ETF for immediate trading.

Read more of this news here.

This is kind of expected to happen already, judging on how the SEC dealt with the ETF for Bitcoin. Maybe people of SEC are thinking that approval of ETFs for both BTC and ETH on the same year may not be a very good idea and so we can expect that they will postpone this matter as much as they can for whatever reason they can think of. Now, personally, this can actually be a good decision and we can use to our advantage as we are given more time to accumulate more Ethereum so that by the time the ETF is approved we are full-ready with our arsenal intact. What do you think on this development?

[Z-tight]

I believe the SEC would approve an Ethereum ETF, but it may not happen as soon as many people think, after the approval of BTC spot etf's in the U.S, an Ethereum ETF was going to follow and it will, but when is the question now. Another crypto stop etf approval would be a boost to the crypto market, in terms of its price and 'popularity' amongst institutional investors.

[Faisal2202]

I have shared my POV on this matter before in some other forum, and they were, that SEC will repeat the same sequence they repeated with BTC ETF. This means they will firs delay the deadlines, and extend them. They will delay the decision as much as they can. Because they don't want ETFs to be in the market soon. That's why they will delay the decision as long as then can just like they did with BTC. And in the end, they will accept the ETF for ETH.

But To be honest, I thought after the approval of BTC ETF they might not repeat this drama again, and will approve ETFs soon. As Hong Kong has already approved ETH ETFs but that's definitely not going to influence the market at bigger scale. At first I thought SEC is delaying the decision on purpose as they might be waiting for the right time. But I was wrong, they just want to delay ETF's approval that's it.

[Charles-Tim]

I believe the SEC would approve an Ethereum ETF, but it may not happen as soon as many people think, after the approval of BTC spot etf's in the U.S, an Ethereum ETF was going to follow and it will, but when is the question now. Another crypto stop etf approval would be a boost to the crypto market, in terms of its price and 'popularity' amongst institutional investors.

Maybe or maybe not. According to what I have been reading on the news and Twitter recently, since yesterday or two day ago, I read that it is possible that United States SEC may not approve ethereum ETF. Everybody has been expecting that by may, ethereum ETF would be approved by the SEC. Some weeks or like 3 months ago, we saw a news that senators told the SEC governor that he should stop approving crypto ETF. Let us wait and see what will happen.

[Z-tight]

Some weeks or like 3 months ago, we saw a news that senators told the SEC governor that he should stop approving crypto ETF. Let us wait and see what will happen.

Yeah, we would see; BTC spot etf's was delayed for a long time before it was finally approved, i don't really know when these institutions filed for their ethereum etf's, though i remember Blackrock filed for theirs (ishares Ethereum trust) in late last year. It may take a long time before we see an ethereum etf and the sec might reject all the pending applications.

[yhiaali3]

This postponement was expected from the beginning. The good thing is that it has not been rejected yet, although there are fears that it will be rejected by the SEC, but this postponement may be useful for companies to exert some pressure in order to obtain approval.

On the other hand, the Bitcoin and Ethereum ETFs were approved in Hong Kong. This is a good and positive thing for the market in general and it could also be encouraging for the US government to give approval. We have to wait until June to see the results.

[Charles-Tim]

Yeah, we would see; BTC spot etf's was delayed for a long time before it was finally approved, i don't really know when these institutions filed for their ethereum etf's, though i remember Blackrock filed for theirs (ishares Ethereum trust) in late last year. It may take a long time before we see an ethereum etf and the sec might reject all the pending applications.

Bitcoin spot ETF was not delayed. Since November we have known the date that United States SEC will approve bitcoin ETF, that it would be January 11, 2024. The day was not shifted. I do not follow much about ethereum ETF but I saw on Twitter as some people speculated that it would be approved likely in May. About bitcoin ETF, I saw on the news in November that bitcoin ETF would be approved in January 11, 2024. I have a brother that even read the news from somewhere and also told me the same thing. We all waited for the day and it was approved.

[Stompix]

Bitcoin spot ETF was not delayed.

It was delayed a lot of times.
In August:
https://www.coindesk.com/policy/2023/08/31/after-grayscale-victory-sec-kicks-the-can-on-latest-bitcoin-etf-applications/
September:
https://cryptoslate.com/sec-postpones-decision-on-ark-21shares-proposed-spot-bitcoin-etf-until-january-2024/

Here is a graph (a bit updated) on the previous delays:



Anyhow no surprise!
Grayscale is asking for a conversion, this won't be approved unless the others get a green light on their initial applications, the real step is the decision on the the other submissions.

[Charles-Tim]

It was delayed a lot of times.
In August:
https://www.coindesk.com/policy/2023/08/31/after-grayscale-victory-sec-kicks-the-can-on-latest-bitcoin-etf-applications/
September:
https://cryptoslate.com/sec-postpones-decision-on-ark-21shares-proposed-spot-bitcoin-etf-until-january-2024/

Here is a graph (a bit updated) on the previous delays:

Anyhow no surprise!
Grayscale is asking for a conversion, this won't be approved unless the others get a green light on their initial applications, the real step is the decision on the the other submissions.

I read about the delays but I did not count them as delays when United States SEC was still planning on the approval but many people wanted it to be asap. It was either October or November news that I read that I know SEC will approve it in January 10. If SEC shift it from January 10, I will count it as a delay. Although this may be from my own perspective and I may not be that correct about it. I could remember that my burger and intakes about it and the day was nit a surprise for us.

[Z-tight]

I read about the delays but I did not count them as delays when United States SEC was still planning on the approval but many people wanted it to be asap.

It was dalayed a lot of times, the SEC has 240 days to either approve or deny an application from the time it starts reviewing it. They also set deadlines at different intervals, many of those deadlines were missed, and if that happens, the decision is shifted to the next deadline.

I believe the application of Blackrock was the reason why the SEC approved all the 11 pending etf applications at that time, probably if Blackrock didn't apply, the SEC would have kept on postponing it, until the 240 days elapses on all the pending applications.

[hugeblack]

Just beacuse Ethereum is second in terms of market capitalization? that it mean ETH ETF will be accepted or what those who support Ethereum ETF rely on? Bitcoin was accepted with a few votes and after it was postponed many times, so acceptance of the Ethereum ETF will not be as quick as many imagine.

[Rubel007]

The SEC will delay the approval of ethereum ETF.  Bitcoin ETF has just been launched. I don't think they will approve Ether ETF now. And there is no time limitation that they will ever approve it. The time they took to approve Bitcoin ETF may be similar for ethereum ETF. However, even if Bitcoin ETF is approved, it cannot be said that Ethereum ETF will approve. But as a crypto enthusiast i consider If Ethereum ETF is approved in the market quickly, then a positive impact will be created in the whole crypto market.

[NotATether]

Naturally, this was the only outcome we could've expected from the SEC because when was the last time you have seen them make a speedy decision about crypto? That's right, when it causes massive damage, and only to restrict certain types from use. (See for example Terra Luna).

They have done this delaying nonsense with the Bitcoin ETFs too, until their floodgates burst.

[Stompix]

It was either October or November news that I read that I know SEC will approve it in January 10. If SEC shift it from January 10, I will count it as a delay.

But what about the previous ones, before October, it's not fair to count the results just from where you first heard of them, It's like saying humans managed to fly from the first try because you don't count anyone before the Wright brothers 

I believe the application of Blackrock was the reason why the SEC approved all the 11 pending etf applications at that time, probably if Blackrock didn't apply, the SEC would have kept on postponing it, until the 240 days elapses on all the pending applications.

The SEC postponed BR also twice, what happened in January was about timing, if they were going to above ARK it would give them too much of an advantage and they would also have to approve the conversion of Grayscale, so allowing two competitors almost 4 months so they passed them in bulk, if they would have rejected ARK which had 3 deadlines already they would have rejected them all.
Quite funny, ARK helped their largest competitor by doing most of the work and after that, they got trashed by it.

Just beacuse Ethereum is second in terms of market capitalization? that it mean ETH ETF will be accepted or what those who support Ethereum ETF rely on? Bitcoin was accepted with a few votes and after it was postponed many times, so acceptance of the Ethereum ETF will not be as quick as many imagine.

Ethereum doesn't have the same backing.
All altcoin lovers were supporting Bitcoin to create a precedent, when it's about another Altcoin it's competition amongst them, you won't see exchanges fighting for it, you won't see XRP or Solana or Cardano that keen on helping them, and you won't see people heavily invested in BTC or ones that have identified with it like Saylor or Bukele advertising it. Same for large companies on the stock market, Riot, Mara, Hut8, they won't pay for lobby for ETH as they did for BTC either.