SEC prepares proceedings on Grayscale spot Ether ETF, pushes deadline

The United States Securities and Exchange Commission has postponed its decision on whether or not to approve the Spot Ether (ETH) exchange-traded fund (ETF) from Grayscale Investments, opening the application to public comments.

In a January 25 announcement, the SEC said that NYSE Arca will develop procedures to approve or reject a rule change that would allow Grayscale Ethereum Trust shares to be listed and traded. Opening the proposed investment vehicle to public comment pushes the decision deadline for an additional 35 days after publication in the Federal Register.

“Interested persons are invited to submit written data, views and arguments regarding whether or not the proposed rule change should be approved,” the SEC said.

Related: BlackRock SEC Approval File at 576-1 Post-BTC ETF Nod — Is Ether ETF Next?

The SEC announcement came 15 days after the commission first approved listings of spot Bitcoin (BTC) ETFs on U.S. exchanges, including one from Grayscale Bitcoin Trust. Since its launch, GBTC withdrawals have been among the top 10 BTC ETFs allowed, reaching nearly $4.4 billion in nine trading days.

Greyscale originally filed with the SEC in October to convert Greyscale Ethereum Trust shares into a spot ether ETF, adding its name to a list of companies awaiting the regulator's decision. On January 25, the SEC pushed back a decision on BlackRock's spot Ethereum ETF until March, with many experts predicting the commission could take the maximum 240 days allowed.

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