The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on spot Ethereum exchange-traded fund (ETF) proposals submitted by Grayscale Investments and Franklin Templeton.
In two filings made on Tuesday, the SEC announced that it requires additional time to review the proposals submitted by these prominent fund managers.
Grayscale Investments and Franklin Templeton, along with various other fund managers, are pursuing approval from the SEC to introduce investment products that would facilitate trading on U.S. stock exchanges. Grayscale initiated the process by submitting an application to the SEC in October, aiming to transform its Grayscale Ethereum Trust (ETHE) into an Ethereum ETF. Franklin Templeton joined the fray in February by submitting an S1 form to the regulatory body.
The SEC made history in January by approving 11 spot Bitcoin ETFs, marking a significant shift after a decade of rejections. These investment vehicles now trade on stock exchanges, offering traditional investors exposure to Bitcoin’s price movements.
The success of Bitcoin ETFs, evidenced by substantial inflows within a short period, has prompted top fund managers to seek similar offerings for Ethereum, the second-largest cryptocurrency by market capitalization.
The delay in the SEC’s decision underscores the complexity and regulatory scrutiny surrounding the approval process for cryptocurrency-related investment products.