In advance of potential approval, Grayscale Investments filed a crucial spot Ethereum ETF amendment. Asset management firm Grayscale Investments updated its filing on 16th March with the Securities and Exchange Commission (SEC) while waiting for the watchdog to decide on its spot Ethereum ETF application.
Ethereum ETF is equally in demand
Grayscale Chief Legal Officer, Craig Salm said in a X post that Grayscale has submitted the Ethereum Trust’s revised 19b-4 filing to the US SEC. This is an important step in upgrading ETHE to start trading on the New York Stock Exchange Arca. The demand for spot Ethereum ETFs is as strong as it was for spot Bitcoin ETFs, he said.
The X post wrote, “We just filed Grayscale Ethereum Trust’s amended Form 19b-4 filing. This is an important step in our effort to uplist $ETHE to NYSE Arca.” Additionally, “Investors want and deserve access to Ethereum in the form of a spot Ethereum ETF and we believe the case is just as strong as it was for spot Bitcoin ETFs.”
As with many of the other applicants, Grayscale was looking for a way to give investors access to ETH. It then teamed up with NYSE Arca and filed with the SEC to swap its ETHE for a spot Ethereum ETF in October. But, Grayscale was put on hold citing prolonged scrutiny instead of getting a favorable response like it did with its spot Bitcoin ETF.
Thus, the initial deadline of November 17, 2023, was extended further. To allow for ample time to thoroughly assess Grayscale’s Ethereum ETF, another extension was announced until January 25. The regulator also postponed the decisions on several other filers’ applications.
What will the SEC’s decision be?
Until now, market experts have been pretty sure that the SEC will approve the offer, and one of the key deadlines is May. Considering how well spot Bitcoin ETFs are doing, we’d expect the SEC to approve Ethereum ETF filings promptly. This stance, however, is threatened by some uncertainties.
Several US lawmakers have written to SEC Chair Gary Gensler to urge meticulous scrutiny and caution in the approval process of crypto ETFs because it concerns market integrity and investor protection. These lawmakers include Rhode Island Senator Jack Reed and California Senator Laphonza Butler.
“Finally, we believe the SEC should strictly limit the precedential application of these approvals,” the senators said.
It is somewhat unlikely that the SEC will find in favor of the spot Ethereum ETF filers with this kind of statement, but the crypto industry is still hopeful. A ray of hope for Grayscale can be seen in its move to amend its Form 19b-4, which points towards the possibility of receiving the approval that has been long anticipated.
