SEC Postpones Ethereum Once Again for Bitcoin Giant Grayscale! - Coin Newsletter

The U.S. Securities and Exchange Commission (SEC) has issued a postponement of Grayscale's Ethereum ETF application.

In a statement on Tuesday (March 20), the SEC said it has postponed the application for a spot Ethereum exchange-traded fund (ETF) offered by major financial institution Grayscale until May 30, 2024:

The Commission found that it was appropriate to set a longer period for a final decision, in order to have sufficient time to consider the proposed rule change and the issues raised therein.

The regulator recently took a similar step, announcing that it was postponing its decision on spot Ethereum ETFs applied for by Hashdex and Ark 21Shares until a later date.

While world-class financial giants such as Fidelity and BlackRock have applied for a spot Ethereum ETF, the SEC's recent cold and secretive attitude has quickly dampened expectations of an approval in May.

Bloomberg's senior ETF analysts recently announced that the probability of spot Ethereum ETF approval in May was reduced from 70% to 30%.

Considering that Ethereum is a security, not a commodity, unlike Bitcoin, the SEC recently opened an investigation into the Ethereum Foundation.