WASHINGTON, Monday, April 29, 2024- The U.S. Securities and Exchange Commission (SEC) has postponed its decisions on proposals for spot Ethereum exchange-traded funds (ETFs) submitted by Grayscale Investments and Franklin Templeton. This marks the latest development in the ongoing saga of approving a US-based ETF directly tied to the world’s second-largest cryptocurrency. 1
The SEC had previously set deadlines for reviewing both applications. However, the regulatory body has now pushed back its decisions, citing the need for more time to thoroughly evaluate the proposals. This delay raises questions about the near-term prospects for a spot Ethereum ETF in the US.
Grayscale, the world’s largest digital currency asset manager, has been a vocal advocate for a spot Ethereum ETF. Their proposal seeks to provide investors with a regulated and transparent way to gain exposure to Ethereum’s price movement without directly buying the cryptocurrency itself.
Franklin Templeton, a major traditional asset management firm, also entered the fray with its own spot Ethereum ETF proposal. This move signaled growing institutional interest in Ethereum and the potential benefits of an ETF structure.
The SEC’s hesitation highlights ongoing concerns about potential risks associated with cryptocurrency markets, including volatility and potential manipulation. The regulatory body may be seeking additional assurances regarding custody practices, market integrity, and investor protection before approving a spot Ethereum ETF.
