On March 22nd, the United States Securities and Exchange Commission (SEC) once again postponed its decision on Grayscale’s application to list an Ethereum futures exchange-traded fund (ETF).
The SEC is required to issue a final decision by May 30th, but it had also delayed the decision in December of last year, seeking public comment on whether Ethereum’s proof-of-stake (PoS) consensus mechanism could lead to fraud or manipulation.
Interestingly, in December of last year, the SEC approved applications from ProShares, VanEck, and Bitwise to list Ethereum futures ETFs. Grayscale, in addition to its futures ETF application, is also currently applying to convert its Ethereum investment trust into a spot ETF, similar to the recently approved conversion of its Bitcoin investment trust (GBTC) in January.
Commenting on Grayscale’s simultaneous filing strategy, Bloomberg ETF expert James Seyffart expressed doubts about Grayscale’s genuine interest in launching a futures ETF, suggesting that it might be a “Trojan horse” to obtain a specific order from the SEC. Seyffart also noted that disapproval of either Ethereum futures ETFs or spot ETFs would be worse for the SEC.
In its previous battle with the SEC over Bitcoin ETFs, Grayscale argued in court last year that the SEC’s stance on spot ETFs not meeting standards, despite the existence of Bitcoin futures ETFs, was “unfair.”
The court ordered a review of the case, ultimately approving 10 ETFs in January.
Meanwhile, reports this week suggest that the SEC is investigating the Ethereum Foundation, raising concerns that Ethereum may be considered a security.