The U.S. Securities and Exchange Commission has delayed a decision on a Spot Ethereum exchange-traded fund (ETF) proposal from both Grayscale Investments and Wall Street giant Franklin Templeton.
In two filings on Tuesday, regulators Said It will take more time to consider proposals from top fund managers.
Both companies and many other fund managers hope to get permission from the SEC to allow their investment vehicles to begin trading on U.S. stock exchanges.
Grayscale filed an application with the SEC in October to convert the Grayscale Ethereum Trust (ETHE) into a Spot ETH ETF. Franklin Templeton entered the race in February by filing an S1 form with regulators.
The SEC approved 11 spot Bitcoin ETFs in January, allowing them to trade after a decade of denials. These investment vehicles are now traded on stock exchanges, allowing traditional investors to buy shares linked to the price of cryptocurrencies.
They were a huge success and recorded huge inflows in just a few months. Now, the top fund manager wants to release an investment vehicle that offers investors exposure to ETH, the second-largest cryptocurrency by market capitalization.
However, industry analysts have since Said Regulatory product approval is unlikely to be approved by the May deadline.
Investment bank J.P. Morgan said earlier this month that there is “less than a 50% chance that a Spot Ethereum ETF will be approved by May,” and if the Ethereum ETF is not approved by next month’s deadline, applicants added that it would take countermeasures. regulator.
Edited by Andrew Hayward
