all41author The Securities and Exchange Commission delayed its decision Thursday on approving Grayscale's GBTC proposal for a spot Ethereum ETH/USD exchange-traded fund.
This decision follows the initial proposal submission by NYSE Arca, Inc. on Oct. 10, 2023.
Grayscale's Ethereum Trust aims to reflect the value of Ethereum held by the trust minus expenses and liabilities.
The trust's assets consist solely of Ethereum and related rights.
Each share represents a proportional interest in the trust's assets based on the total number of shares outstanding.
The SEC's decision to delay comes amid legal and policy considerations regarding the proposed rule change.
The SEC said it is seeking public comments to further analyze the proposal's alignment with the Securities Exchange Act of 1934.
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The law mandates that national securities exchange rules must be designed to prevent fraudulent and manipulative acts and practices and protect investors and the public interest.
Key questions raised by the SEC for public comment include the appropriateness of listing the shares under the specific NYSE Arca rule, the susceptibility of the proposed trust and shares to manipulation and the correlation between Ethereum spot markets and the Chicago Mercantile Exchange Ethereum futures market.
The SEC is inviting written submissions from interested parties concerning the proposal's consistency with the Securities and Exchange Act. Comments may be submitted electronically via the SEC's internet comment form or by email and paper comments can be sent to the SEC's Washington, D.C. office.
The deadline for submitting comments is 21 days after the proposal's publication in the Federal Register, with a further 35 days allowed for rebuttals.
Bloomberg analyst James Seyffart said spot Ethereum ETF delays will continue to occur sporadically over the next few months.
"Next date that matters is May 23rd," he said.
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Photo via Pixabay.
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