The U.S. Securities and Exchange Commission (SEC) has decided to postpone its ruling regarding Grayscale Investments’ request to transform its Ethereum trust product into a spot exchange-traded fund (ETF), as reported by Reuters on Thursday.
Just a day earlier, the SEC also deferred its decision on BlackRock’s sizable asset manager’s application to introduce a comparable product until March 10, 2024. These delays were largely anticipated by analysts, who had limited expectations for approval before May of this year.
SEC Chair Dampens Enthusiasm Over ETH ETFs Approval
The prospects of Ethereum ETF applications receiving approval in the near future have been dampened by Securities and Exchange Commission Chair Gary Gensler. During a media briefing on January 24th, Gensler underscored that the recent approval of Bitcoin ETFs by the agency was specifically tailored for Bitcoin and did not represent a broader endorsement of other cryptocurrencies.
This clarification carries significance in light of speculation within certain circles that Ethereum ETFs might be the next in line for regulatory approval. Gensler addressed these anticipations during the briefing, stating, “As I mentioned two weeks ago, the actions taken regarding bitcoin exchange-traded products are limited to this specific commodity, which is not classified as a security, and should not be interpreted to imply anything more than that.”
Spot Bitcoin ETFs Approval Mark a New Beginning for Crypto
The recent breakthrough in the crypto sector occurred when the SEC granted approval to 11 spot Bitcoin ETFs earlier this month. This momentous event marked a significant milestone for the industry, which had been advocating for regulatory approval of such products for more than a decade.
These ETFs, designed to mirror the market price of the underlying digital asset, provide investors with a convenient means to gain exposure to Bitcoin without the need to directly purchase the cryptocurrency.
The approval sparked widespread enthusiasm and heightened expectations of increased collaboration between traditional finance and the crypto industry through the introduction of these ETFs. Consequently, there has been a noticeable surge in the value of crypto tokens and related industry stocks, reflecting the optimism surrounding this development.