US SEC Delays Grayscale Ethereum Futures ETF Approval, ETH Price In Pressure

The U.S. Securities and Exchange Commission has delayed its decision on the approval of the Grayscale Ethereum Futures Trust’s Ethereum ETF application. The new deadline is set for May 30, as per the document filed on Friday.

SEC Seeks More Time

Under the Securities Exchange Act of 1934, the agency has a timeframe of 180 days or six months from the publication of the proposed rule change notice. Grayscale submitted its application in September, and the agency postponed its decision in November. In its recent filing, the SEC said:

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein”.

In a recent X post, Bloomberg ETF analyst James Seyffart commented that the delay was anticipated. Seyffart, who has previously suggested that Grayscale is strategically maneuvering to secure eventual approval for a spot Ethereum ETF from the SEC, emphasized the deliberate nature of their approach.

The agency has previously postponed its decision-making timeline for Grayscale’s ether futures ETF on several occasions. However, it’s noteworthy that the SEC had previously approved a set of ether futures ETFs in October 2023, which included offerings from ProShares, VanEck, and Bitwise.

Ethereum (ETH) Price Under Pressure

As reported, the Ethereum community joined forces with Solana in response to ongoing security allegations raised by the Securities and Exchange Commission (SEC). Concurrently, Ethereum’s native cryptocurrency, ETH, has undergone a notable retracement of approximately 18% since reaching its peak on March 11th. As of press time, the Ethereum price is trading 5.16% down at $3,326 with a market cap of $400 billion.

Furthermore, the Ethereum whale activity within the cryptocurrency market has surged to its highest levels in 2024, reflecting heightened interest and activity among large-scale investors.

Analysts emphasize the importance of monitoring the 30-day average returns of ETH wallets, which currently suggest a favorable buying opportunity. Additionally, Ethereum’s Relative Strength Index (RSI) has declined to 28.5, marking its lowest level since experiencing a price bottom in late January.