Blackrock, Grayscale should wait for SEC spot ETH ETF decisions

The United States Securities and Exchange Commission (SEC) is delaying its decision on BlackRock and Grayscale's applications for ethereum (ETH) exchange-traded funds (ETFs). The SEC issued announcements delaying Greyscale's decision and updating BlackRock's application just hours after the agency pushed forward with its decision on Franklin Templeton's proposed spot ETH ETF.

The SEC's decision to switch digital asset manager Greyscale ETH Trust to its spot ETH exchange trading product on NYSE Arca was on April 24, but has now been extended 60 days to June 23.

“The Commission finds it appropriate to extend the period within which to issue an order to modify or challenge the proposed rule to allow sufficient time to consider the proposed rule change,” the agency wrote in its April 23 announcement. He published a Notice of Submission of Grayscale Updates on April 2nd. The amendment strengthened Grayscale's argument, but did not materially change his opinion.

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The SEC is now expected to issue a decision on Franklin Templeton's application on June 11.

Also on April 23, Grayscale filed an S-3 form, which is similar to but shorter than the S-1, for the Grayscale ETH Trust and the S-1 for the Grayscale ETH Mini Trust.

BlackRock filed an S-1 filing for the Space ETH ETF in November. A decision on Blackrock's application was delayed in March. Later that month, the SEC pushed back the Hashdex and ARK 21 spot ETH ETF applications by two months until the end of May.

BlackRock filed the update on April 19. The April 23 announcement details the changes found in the amendment, which mainly deals with creation and redemption of shares. It also extends the comment period on the proposal to 21 days after it is published in the Federal Register. No new deadline has been announced for the SEC's decision on it.

Observers say the SEC is out of touch with spot ETH ETF applications, which many interpret as a sign of impending doom.

In August, an appeals court partially overturned the SEC's rejection of the receivership application, giving Grayscale a victory against the SEC.

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