In a major development in the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has initiated review proceedings regarding Grayscale Investments’ application for an Ethereum spot ETF and extended the deadline for a decision.
Grayscale Ethereum ETF Review Period
Grayscale filed an application with the SEC on October 10, 2023, seeking approval to list and trade Grayscale Ether Trust shares on the New York Stock Exchange (NYSE) Arca under commodity-based trust stock rules.
The proposal was published in the Federal Register for public comment on Oct. 27. The SEC provided an extension to approve, disapprove, or initiate proceedings regarding the proposed rule change, in response to a similar step the SEC took before approving a bitcoin spot exchange-traded fund on Jan. 11.
With the launch of the review process, the SEC said it will "thoroughly" analyze whether to approve or disapprove the proposed rule changes. The Commission's initiation of the review process does not imply any predetermined conclusions, but rather reflects the need to further examine the legal and policy issues related to the Ethereum ETF application.
The SEC specifically emphasizes the need to consider whether the proposed rule changes are consistent with Section 6(b)(5) of the Securities Exchange Act of 1934, which requires national securities exchange rules to prevent fraudulent and manipulative practices, protect investors, and serve the public interest.
The SEC also encourages interested parties to provide comments addressing the adequacy of the stock exchange statements related to the proposed rule change and any other questions related to the proposed rule change.
SEC requests feedback
The Commission raised several questions for commenters to answer, including the appropriateness of listing and trading the shares under NYSE Arca Rule 8.201-E, given the nature of the underlying assets held by the trust.
The SEC also sought additional input on the exchanges’ arguments regarding listing and trading spot bitcoin exchange-traded products (ETPs).
Individuals and organizations interested in Ethereum ETF applications are welcome to submit written data, views, and arguments regarding the consistency of the proposed rule changes with the Act and its regulations. Although oral presentations are not deemed necessary at this stage, the Commission will consider requests for such presentations.
Despite the recent approval of 11 Bitcoin spot exchange-traded funds, uncertainty remains about the Commission’s future actions regarding the approval of Ethereum ETF applications.
In addition, the SEC classified Ethereum as a "security" and how this classification affects the decision-making process of 12 Ethereum ETF applications. It is worth noting that the SEC considers Bitcoin as the only commodity in the cryptocurrency market.
#SEC #现货以太坊ETF
