SEC postpones decision on Grayscale’s proposed ETH ETF rule change

The SEC has until Jan. 1, 2024 to make a decision

article-image

Shubham Dhage/Unsplash modified by Blockworks

share

The Securities and Exchange Commission on Wednesday announced that it will “designate a longer period within which to take action on the proposed rule change” for Grayscale’s Ethereum Futures Trust. 

The filing pushes the deadline to Jan. 1, 2024. 

In the filing, the SEC said that the “Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.” Essentially, the regulatory agency has another window to push back a decision.

Bloomberg analyst James Seyffart posted on X that the delay of the 19b-4 filing was not “remotely surprising.”

Loading Tweet..

Grayscale filed in early October to convert its Ethereum Trust into an ETF. 

“As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the US regulatory perimeter,” Grayscale CEO Michael Sonnenshein said in a statement at the time. 

In August, Grayscale scored a court win against the SEC after it sought to convert its bitcoin trust (GBTC) to an ETF. 

The judges didn’t order the SEC to give Grayscale’s proposal a greenlight, but rather ordered the regulatory body to re-examine the application it originally denied. 

The panel of judges agreed that the original denial, but the allowance of bitcoin futures ETFs was “arbitrary and capricious.”

Alongside spot bitcoin ETFs, firms are now vying to get spot ether ETFs off the ground. Ark Invest and 21Shares plan to introduce five funds holding both bitcoin futures and ether futures this week. Both filed for the products back in August. 

In early October, six ETFs holding ether futures launched, with roughly $20 million or so in combined assets under management as of early November. 

Additionally, ETF watchers are keeping a close eye on the SEC’s approach to the spot bitcoin ETFs after big traditional finance firms such as BlackRock threw their hats in the ring. 

The SEC also postponed decisions on the big ETFs in late September ahead of a potential government shutdown.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Decentralized money was a “very unpopular goal” when concepts were proposed in the ’90s, said Nick Szabo

article-image

Cove aims to deliver “risk-adjusted yield” through curated DeFi vaults

article-image

The best capital markets are open to the most people — and crypto capital markets are open to everyone

article-image

Post-conference musings on Firedancer, Kraken, Solana Mobile and Trump

article-image

Executives expect others to follow SharpLink Gaming’s lead in purchasing an asset that has surged this past month

article-image

After a weekend of tariff policy shifts, investors appear confident that trade deals are underway