News - SEC delays applications for Ethereum Spot ETFs

By Mike Hesp

SEC delays applications for Ethereum Spot ETFs

Ethereum (ETH)
Laws and regulations

The U.S. Securities and Exchange Commission is again proposing two Ethereum ETF applications out. Approval by the SEC in May is considered unlikely.

The Securities and Exchange Commission (SEC) has rejected the applications of Grayscale and Franklin Templeton for an ETH Spot ETF deferred. This is evident from official documents from the U.S. securities regulator.

The authority needs more time to review the application for legal requirements, particularly compliance with the Securities Exchange Act.

The SEC must make a final decision on the two applications by June 23 (Grayscale) and June 11 (Franklin Templeton).

According to Bloomberg analysts James Seyffart and Eric Balchunas, however, approval is unlikely. "We now assume that these [ETH ETFs] will eventually be on May 23 are rejected. The SEC has had no discussions with issuers about the specifics of Ethereum," Seyffart said in a message on X.

In the case of Bitcoin Spot ETFs the U.S. Securities and Exchange Commission was more communicative and sought dialogue with applicants before approving all applications in January.

One reason for the SEC's silence could be the authority's critical attitude toward Ethereum. After all, the SEC believes that ETH can still be classified as a security.

ETF speculation is hitting the price of Ethereum particularly hard. After ETH traded at more than $4,000 in early March, the second-largest cryptocurrency now stands at $3,259. ETH is down two percent in 30 days.

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