The U.S. Securities and Exchange Commission (SEC) continues to leave the crypto community hanging as it delays decisions on two spot ether ETF applications. Grayscale Investments, the world’s largest digital asset manager, had filed an application to convert its Ethereum trust product into an ETF, but the SEC has pushed back its decision on the matter. This follows the SEC’s decision to delay a separate application from BlackRock, the world’s largest asset manager, to launch an ether ETF. The delays come as the SEC grapples with regulating the booming crypto industry, and the agency seems to be taking its time and treading cautiously before approving any new investment products tied to Ether, the second-largest cryptocurrency by market capitalization.
Grayscale Investments, known for its popular Bitcoin trust, now faces further uncertainty as it waits for the SEC to make a decision on its spot ether ETF application. The company made waves when it converted its Bitcoin trust into a SEC reporting company and eventually launched a Bitcoin ETF in Canada. However, it appears the SEC is not quite ready to take the same step with Ethereum just yet.
Meanwhile, BlackRock’s application to launch an ether ETF has also hit a speed bump as the SEC needs more time to evaluate the proposal. BlackRock, a giant in the traditional finance world, has been cautiously exploring the crypto space and even started offering Bitcoin futures exposure to its clients through two of its funds. But an ether ETF might be a step too far for the SEC at the moment, as the agency continues to grapple with how to regulate digital assets.
Overall, the delays in approving these spot ether ETF applications emphasize the cautious approach the SEC is taking when it comes to regulating cryptocurrency investment products tied to Ethereum. While it’s understandable that the agency wants to ensure investor protection and market integrity, it also raises questions about how long it will take for the SEC to give the green light to these types of products. In the meantime, the crypto community will have to wait and see if the SEC eventually approves an ether ETF, and if so, when.
