2024-04-25 06:08:18
- The US SEC delayed a decision on the Grayscale and Franklin Templeton proposals.
- Grayscale planned to spin off a Mini Ethereum Trust following the conversion of ETHE to ETF.
In a not-so-surprising move, the US Securities and Exchange Commission (SEC) has delayed a decision on the next step for Grayscale and Franklin Templeton’s proposed space. Ethereum [ETH] ETF.
The SEC has postponed a decision on Franklin Templeton’s and Grayscale’s applications until June 11 and June 23, respectively.
Regarding the Delayed Decision for the Proposed Conversion of the Grayscale Ethereum Trust [ETHE] to ETFs, SEC noted,
“The Commission believes it is appropriate to set a longer period within which issue an order approving or denying the proposed rule change to give you enough time consider the proposed rule change, as amended by amendment No. 1, and the issues raised in this.”
Grayscale reveals the plan to spin off ETHE into a Mini Trust
The SEC announced the delayed decision on April 23. On the same day, Grayscale announced a plan to spin off a Mini Ethereum Trust, likely with lower fees than ETHE.
Part of the statement file,
“Our goal is for $ETH to launch as a spinoff of $ETHE. The 14C outlines the mechanics of how shares in the Grayscale Ethereum Mini Trust will be separated and distributed to ETHE shareholders, once more subject to regulatory approval.”
There were other moves in the wake of the ETH ETF proposals. Bloomberg ETF analyst James Seyffart called them “default,” as they summarized the new development.
“Lots of movement on #ethereum ETFs with multiple issuers and the SEC: Grayscale Just Filed Its S-3/Prospectus To Convert $ETH, (Expected & Standard) SEC Delayed Decisions On Grayscale & Franklin, BlackRock Filed Amendment To Its 19b-4 ETH ETF Filing «
Reacting to Seyffart’s briefing, Bloomberg ETF analyst Eric Balchunas saw the move as a “vain” attempt to seek the SEC’s attention.
He underlined,
“Great summary of all the action … which seems like a last-ditch push to try to get the attention of the SEC, although it will likely be in vain. “We were pessimistic regarding the approval because it was good, and now we’re pessimistic, too. “
Most ETH investors will now focus on Hong Kong ETFs as the May US ETH Spot ETF rejection looks deeper.
At Polymarket, a market prediction platformMay approval game for US spot ETH ETFs fell below 15%.
Hong Kong Spot ETH ETFs will officially start trading on April 30, with issuers setting fees below 1% which rate wars loom.
That said, ETH was trading at $3,150 at the time of writing.
It remains to be seen whether Hong Kong ETFs will push ETH to retest $4000.
This is an automatic translation of our English version.
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