Key Points
- The US SEC has postponed decisions on Grayscale and Franklin Templeton’s proposed spot Ethereum ETFs.
- Grayscale has announced plans to create a Mini Ethereum Trust following the conversion of ETHE to ETF.
The US Securities and Exchange Commission (SEC) has decided to delay the verdict on Grayscale and Franklin Templeton’s proposed spot Ethereum [ETH] ETFs. The decision regarding these applications has been pushed to the 11th and 23rd of June, respectively.
SEC’s Delayed Decision
In regards to the proposed conversion of Grayscale Ethereum Trust [ETHE] to ETF, the SEC stated that it needed more time to consider the change and the issues it raises. This decision was communicated on the 23rd of April.
On the same day, Grayscale declared its intention to establish a Mini Ethereum Trust, possibly with reduced fees from its ETHE. The company aims for $ETH to launch as a spin-off from $ETHE, subject to regulatory approval.
Reactions and Future Developments
There have been additional developments on the spot ETH ETF proposals. James Seyffart, a Bloomberg ETF analyst, referred to these movements as “standard”. However, another Bloomberg ETF analyst, Eric Balchunas, viewed these attempts to gain the SEC’s attention as futile.
With the US spot ETH ETF May rejection seeming more likely, most ETH investors are now turning their attention to Hong Kong ETFs. On Polymarket, a prediction markets platform, May approval bets for US spot ETH ETFs have fallen below 15%.
Hong Kong spot ETH ETFs are set to start trading on the 30th of April, with issuers setting fees below 1% as fee wars loom. At the time of writing, ETH was trading at $3150. Whether the Hong Kong ETFs will boost ETH to retest by $4K remains to be seen.
