News has broken that the SEC will not rule on Grayscale’s request to turn its Ethereum futures ETF into a spot product anytime soon.
The long-standing Grayscale Ethereum Trust (ETHE) product has been traded for quite some time, and last month, Grayscale informed the SEC of its plan to turn it into a spot ETF in its application. With over $5 billion in assets managed, Grayscale’s Ethereum Trust is the biggest ETH investment product in the world.
It would seem that the SEC is maintaining its pattern of unexpected responses to ETF applications, since the answer is expected within a month or two.
The Bloomberg team has a 90% likelihood of approving Bitcoin Spot ETF applications in January, and if that happens, they say, Ethereum Spot ETF approvals will be much more likely. Surprisingly, the SEC has greenlit Bitcoin and Ethereum futures exchange-traded funds (ETFs).
These exchange-traded funds (ETFs) also deal in cryptocurrencies, but instead of digital assets, they use futures contracts, which are familiar to investors knowledgeable about derivatives, and they don’t really own the asset.
