US SEC postpones Grayscale’s Ethereum spot ETF application

The American securities regulator postponed Grayscale’s Ethereum spot ETF application. 

Grayscale is a popular digital assets fund manager, a subsidiary of Digital Currency Group (DCG). A month ago, this firm applied with the United States Securities and Exchange Commission (SEC) to convert its Ethereum futures ETF product into Ethereum spot ETF product. 

Big Investors are already using Grayscale’s Ethereum futures ETF product to trade for a long time but at this stage, Grayscale is willing to bring a better safety experience so that people can invest in its Ethereum financial product with more confidence.

In the futures ETF, Investors only trade on behalf of the numbers (price). But in the case of Spot ETF products,  investors invest money & in return, the ETF issuer purchases the corresponding amount of the actual asset product. In short, both of these things are the same but at a practical level spot ETF products remain safe from several aspects.

According to the latest filing, the SEC body postponed Grayscale’s Ethereum spot ETF application to 25 Jan 2023. That means we have to wait to see the SEC’s decision after 45 days from now. 

This is not the first time when the SEC body postponed a decision on any Ethereum spot ETF application. Earlier this, the SEC postponed the Hashdex Nasdaq Ethereum ETF.

According to the majority of the experts, such types of behaviour by the SEC body regarding such applications show that the SEC body is showing its softer Inclination toward this innovative sector and taking steps carefully. In short, there is a 99.99% chance such applications will get approval.

Alongside the Ethereum spot ETF application, Grayscale is in official continuous discussion with the SEC body for its Bitcoin spot ETF application. 

Currently, the SEC body is busy dealing with the Bitcoin spot ETF applications. At present, nearly 11 Bitcoin spot ETF applications are in the queue on the SEC’s table to get approval.

Ethereum price 

The current trade price of Ethereum (ETH) is $2,289 & this trade price is 2.73% higher over the last 24 hours trade price.

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