Grayscale’s application for an Ethereum exchange-traded fund (ETF) as an alternative trading product (ETP) has been delayed by the US Securities and Exchange Commission (SEC).
This came after several extensions in a succession, and in December of last year, the SEC requested additional public comments. Analysts predicted this type of delay because Grayscale may have done it on purpose to win a 19b-4 order rather than rushing to produce an ETF, as Bloomberg ETF expert James Seyffart surprisingly stated.
The SEC defends the extension of its review period to May 30, 2024 by filing a document noting that more technicalities must be investigated in order to provide meaningful recommendations.
Since many institutions have only recently registered the products, the greyscale approach acts as a stopgap until spot Ethereum ETFs are approved. The product may still be accepted, though.
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