Grayscale Files Crucial Spot Ethereum ETF Amendment, Is Approval Imminent?

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While waiting for the United States Securities and Exchange Commission (SEC) to make a decision on its spot Ethereum ETF application, asset management firm Grayscale Investments has updated its filing with the watchdog.

Grayscale’s Application Faces Postponement

According to an X post by Grayscale’s chief legal officer Craig Salm, the firm amended its Form 19b-4 for the Grayscale Ethereum ETF. 

Salm acknowledged that the recent development is another move towards the effort to uplist Grayscale Ethereum Trust (ETHE) to NYSE Arca. In his opinion, investors need access to Ethereum in the form of spot Ethereum ETFs as much as they have proven to need Bitcoin.

Like many of the other applicants, Grayscale was intentionally seeking a means to give investors access to ETH. In October, it then moved to teaming up with NYSE Arca and filing a request with the SEC to swap its ETHE for a spot Ethereum ETF. Rather than get a favorable response like it did with its spot Bitcoin ETF after the court interfered, Grayscale was kept on hold citing prolonged scrutiny.

Consequently, the initial deadline of November 17, 2023, was extended further to a later date. As the date drew closer, another extension till January 25 was announced for Grayscale’s Ethereum ETF to allow for ample time to thoroughly assess the proposal. 

Several other filers also had a decision on their applications postponed by the regulator as well.

Spot Ethereum ETF Approval in Jeopardy

Before now, market experts are positive that the chance of having approval from the SEC is quite high and one of the key deadlines has been scheduled for May this year. 

Looking at how well spot Bitcoin ETFs are performing, one would have expected that the SEC would be swift in approving the filings for Ethereum ETFs. However, some uncertainties are proving to be a threat to this stance. 

Some U.S. lawmakers including Rhodes Island Senator Jack Reed and California Senator Laphonza Butler wrote to SEC Chair Gary Gensler, urging meticulous scrutiny and caution in the approval process for crypto ETFs as it concerns market integrity and investors protection. 

“Finally, we believe the SEC should strictly limit the precedential application of these approvals,” the senators outlined.

This kind of statement jeopardizes the chance of having the SEC reason in favor of the spot Ethereum ETF filers but the crypto ecosystem is still partially hopeful. Grayscale’s move to amend its Form 19b-4 underscores this ray of hope in the potential to get the much-anticipated approval.

The post Grayscale Files Crucial Spot Ethereum ETF Amendment, Is Approval Imminent? appeared first on CoinGape.

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