The U.S. Securities and Exchange Commission (SEC) has delayed the approval of both the Franklin and Grayscale Ethereum spot ETFs on the 23rd. Standard Chartered Bank has also changed its previous prediction that approval would be granted in May.
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SEC Delays Franklin Ethereum Spot ETF
Further Delay for Grayscale Ethereum ETF
Standard Chartered Changes Optimistic Stance
SEC Delays Franklin Ethereum Spot ETF
Documents show that the SEC has postponed the review deadline for the Franklin Ethereum ETF to June 11th, citing the same reasons as the previous delay for the Ark and Hashdex Ethereum spot ETFs:
“The postponement is appropriate to allow the SEC sufficient time to consider the proposed rule change and address the issues raised therein.”
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SEC Delays Ark and Hashdex Ethereum Spot ETFs, Bloomberg Analyst: No longer optimistic about May approval)
Further Delay for Grayscale Ethereum ETF
The SEC also delayed the review of the Grayscale Ethereum ETF proposal on the 23rd, according to documents, with the new deadline set for June 23rd.
When the SEC opened public comments on the Grayscale Ethereum ETF, it had raised the following concerns:
– Is Ethereum’s proof of stake susceptible to manipulation or influence by a few entities?
– What are the views on Ethereum’s liquidity, transparency, and market sensitivity to manipulation?
– What is the view on the correlation between the Ethereum spot market and the CME Ethereum futures market?
– Does a wrongdoer need to manipulate the CME Ethereum futures to affect volatility, given that the CME Ethereum futures are regulated and related markets?
– Do the above features raise concerns among the public about fraud and manipulation of Ethereum?
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SEC further delays Grayscale Ethereum Spot ETF, questions whether proof of stake is susceptible to manipulation by a few entities)
Standard Chartered Changes Optimistic Stance
Standard Chartered Bank has ultimately changed its optimistic stance on the Ethereum ETF, even though many Bloomberg analysts believed the chances of approval were slim. Standard Chartered analysts had previously believed it could be approved on May 23rd.
According to The Block, Geoffrey Kendrick, Head of Forex and Digital Assets Research at Standard Chartered, stated in a recent report:
“We previously expected the SEC to approve the Ethereum ETF on May 23rd, but this expectation was based on ‘the Ethereum approval process being similar to Bitcoin ETFs’ and constructive dialogue between the SEC and ETF applicants, which hasn’t occurred (or at least hasn’t been made public) thus far, indicating low chances of approval in May.”
Standard Chartered’s view has almost aligned with Bloomberg analysts, in that it will likely be approved in the long term. Kendrick said:
“A rise in Bitcoin prices would also boost Ethereum prices, and even if it’s not approved in May, the global ETF environment continues to improve. We expect the U.S. to eventually approve the Ethereum ETF.”
Franklin Ethereum Spot ETF
SEC
Ethereum ETF
Grayscale
Further reading
Approval of Ethereum ETF in doubt, issuers VanEck and CoinShares lack confidence
Arthur Hayes on the importance of narrative: It’s not about the technology, it’s about telling a story for project success.