Spot Ethereum ETF: Grayscale Files Form S-3 Amid SEC’s Delayed Decision

Grayscale, a leading asset manager in the crypto space, has taken significant strides in its pursuit of a Spot Ethereum ETF. In a recent development, the company filed its Form S-3 with the U.S. Securities and Exchange Commission (SEC) to convert its Ethereum Trust into a Spot Ethereum ETF.

Grayscale Files Form S-3 For Spot Ethereum ETF Application

Unlike other Ethereum ETF issuers, Grayscale’s Ethereum Trust is already registered with the Commission. Hence, the asset manager doesn’t need to consider the S-1 filing. Meanwhile, the Form S-3 filing is a pivotal step in Grayscale’s strategy.

Moreover, it positions the company with all the necessary documentation for the SEC to consider its application. Additionally, Grayscale submitted an S-1 filing for a mini Ethereum ETF, marked by the ticker “ETH.”

This move follows Grayscale’s previous filing for a mini Bitcoin ETF in March, under the ticker “BTC,” which is still pending SEC approval. Furthermore, Grayscale is actively pursuing the listing of its Ethereum Trust to the NYSE Arca exchange as a Spot Ethereum ETF.

The asset manager’s efforts include NYSE Arca’s filing of Form 19b-4, complemented by Grayscale’s Form S-3 submission. If approved, the Ethereum Trust shares would trade under the ticker symbol “ETHE,” with ongoing share issuance contingent upon NYSE Arca’s application effectiveness and Form S-3 registration.

Also Read: Spot Ethereum ETF Proposal by Grayscale Delayed Again

SEC Delays Approval For Ether ETFs

However, despite this proactive approach, the SEC has delayed decisions on applications from Grayscale and other industry players including Franklin Templeton. Speculation looms regarding the outcome, with sentiments largely leaning towards pessimism among issuers. In addition, some expressed concern over the lack of substantial engagement from the SEC staff.

They interpret it as a potential precursor to denial on the looming May 23rd deadline. While some issuers remain hopeful, citing similarities between Ethereum and Bitcoin ETF circumstances, others are less optimistic. They point to unresolved issues surrounding Ethereum staking, suggesting that these complexities could hinder approval.

Additionally, there’s speculation about SEC Chairman Gary Gensler’s stance as netizens believe he wouldn’t approve the Spot Ethereum ETFs and will come up with new grounds for denial. It could even lead to a renews lawsuit from Grayscale, which would have the same outcome as the first one. In the first legal tussle, the SEC lost and had to eventually approve the Spot Bitcoin ETFs.

Also Read: Hong Kong’s Spot Bitcoin ETF and Ethereum ETF To Start Trading On April 30