SEC Delays Grayscale Ethereum ETF, Confirms Receipt of BlackRock ETH Fund

The Security and Exchange Commission today said that it will need more than 45 days to evaluate a rule change that would allow Grayscale to convert its Ethereum trust into an Ethereum spot ETF. The new deadline is January 25, 2024.

The news comes as the regulatory body received notice from investing giant BlackRock that its pending Bitcoin spot ETF has already drawn $100,000 in seed funding from an undisclosed investor.

For Grayscale, the decision comes two weeks after the SEC delayed a separate request from the crypto asset manager to evaluate its proposal for an Ethereum futures ETF. That application was submitted in September.

The reason given in both cases was the same.

"The commission finds 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 proposed rule change and the issues raised therein," reads the SEC's official notice today.

That is, word for word, the same explanation the SEC provided last month.

As for BlackRock, its amended Form S-1 registration for its iShares Bitcoin Trust includes disclosure of a "seed capital investor" that's affiliated with BlackRock. The unnamed investor purchased 4,000 shares at a per-share price of $25 on October 27, for total proceeds of $100,000.