The U.S. Securities and Exchange Commission (SEC) has extended its review period for the proposed rule change to list and trade shares of the Grayscale Ethereum Trust as an exchange-traded fund (ETF) on NYSE Arca. This move, announced in a recent notice, signifies a routine delay in the SEC’s decision-making process, with the new timeline for public comment closing on November 17, 2023. The anticipated decision was originally slated for December 6, 2023.
Grayscale’s push towards an ETF conversion is part of a broader industry effort to bring cryptocurrency assets into more regulated and widely accessible investment vehicles. If approved, it could pave the way for increased institutional and retail investment in Ethereum through a structure familiar to stock investors.
The delay by the SEC is not uncommon in the scrutiny of crypto-related products, as the commission balances regulatory measures with the dynamic and evolving nature of digital assets. Market participants are advised to stay informed of further developments as the SEC continues its evaluation process.