The US Securities and Exchange Commission (SEC) delayed a decision on investment company Grayscale Investments' proposal to convert its ether (ETH) investment fund into a spot ETF.
"The SEC considers it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the change and the issues raised in it," states a document from the regulatory agency.
In the text, it is indicated that the SEC has 45 days to reject or approve the proposal, that is, until January 25. However, you can extend this period to an additional 90 days if you consider it necessary.
For Bloomberg Intelligence analyst James Seyffart, the regulator's decision was expected and he sees it as “completely normal.”
Grayscale's ETH investment fund was launched in March 2019 and manages almost $5 billion, according to information provided by the company itself, representing 2.5% of all ETH in circulation. The company also announced that the financial product is in the hands of more than 250,000 American investor accounts.
Last November the US regulator also postponed its decision on an ETF that proposes holding spot and futures ether (ETH) contracts, presented by the asset management company, Hashdex. On that occasion, the organization announced that the review of this fund was extended until January 1, 2024 to evaluate its characteristics and the proposed amendments. This maybe the one reason behind Ethereum price not surging despite BTC being up 160% this year.
So far, other companies like BlackRock have also shown interest in launching a spot ether ETF. The company presented its proposal on November 15 and is waiting for a response from the regulator.