tl;dr
The U.S. Securities and Exchange Commission has delayed making a decision on spot Ethereum exchange-traded fund (ETF) proposals from Grayscale Investments and Franklin Templeton. The regulator stated that it needs more time to review the proposals. Grayscale filed to convert its Grayscale Ethereum T...
The U.S. Securities and Exchange Commission has delayed the decision on spot Ethereum exchange-traded fund (ETF) proposals from Grayscale Investments and Franklin Templeton. The regulator cited the need for further review. This comes after the SEC approved 11 spot Bitcoin ETFs in January, sparking significant investor interest. However, industry analysts express doubts about the approval for spot Ethereum ETFs by the May deadline, with JP Morgan estimating no more than a 50% chance of approval.
Grayscale filed to convert its Grayscale Ethereum Trust into a spot ETH ETF in October, while Franklin Templeton filed in February. Both firms, along with other fund managers, are seeking SEC approval for their investment vehicles to trade on American stock exchanges. The SEC's delay in making a decision has raised uncertainty about the likelihood of approval by the May deadline. If the spot Ethereum ETFs are not approved by next month, applicants are considering taking action against the regulator.
Investment bank JP Morgan stated that there is skepticism regarding the approval of spot Ethereum ETFs by the May deadline, emphasizing that the chances are no more than 50%. The delayed decision has left industry analysts and fund managers uncertain about the potential approval of these investment products, reflecting the evolving dynamics of cryptocurrency regulations and market dynamics.
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