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The U.S. Securities and Exchange Commission (SEC) has postponed a decision on a proposed Ethereum exchange-traded fund (ETF) from Grayscale Investments and Wall Street giant Franklin Templeton.
In two filings Tuesday, regulators said they would need more time to review proposals from top fund managers.
The two companies and several other fund managers are hoping to receive approval from the SEC to allow the investment vehicles to begin trading on U.S. stock exchanges.
Grayscale filed an application with the SEC in October to convert the Grayscale Ethereum Trust (ETHE) into a spot ETH ETF. Franklin Templeton entered the race by filing an S1 form with regulators in February.
The SEC approved 11 spot Bitcoin ETFs in January, allowing them to be traded after a decade of rejection. Investment vehicles are now traded on stock exchanges, giving traditional investors the ability to purchase stocks that track cryptocurrency prices.
They have been extremely successful, with a huge influx of users in just a few months. Now, top fund managers are looking to launch investment vehicles that will give investors exposure to ETH, the second-largest cryptocurrency by market capitalization.
However, industry analysts have since said Approval of the product by regulators is unlikely to occur until the May deadline.
Investment bank JP Morgan said earlier this month that “the probability of an Ethereum ETF being approved by May is less than 50%,” adding, “If the Ethereum ETF is not approved by the deadline next month, applicants will take action.” regulator.
Editor: Andrew Hayward
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