“Grayscale’s Ethereum ETF embarks on a pivotal 240-day review, setting the stage for potential adoption of the world’s second-largest cryptocurrency in traditional financial markets. Anticipation grows as its Bitcoin counterpart gears up for a January debut, ushering in a new era of digital asset investment.”
The U.S. government has published an application by crypto giant Grayscale to launch an Ethereum ETF for the spot market. This move is significant because it begins a 240-day countdown for the Securities and Exchange Commission (SEC) to respond. Grayscale initially applied for the ETF in early October.
The timing of the Ethereum ETF process coincides with a surge in crypto prices, which analysts believe is related to pending decisions by the SEC on Bitcoin ETF applications by Grayscale, BlackRock, and other companies. Bitcoin prices have risen by around 27% since the start of October, while Ethereum has climbed 7%.
Many in the crypto industry anticipate that the approval of ETF products will bring a flood of new liquidity into the markets. ETFs make it easier for retail investors to buy various assets in the form of shares.
Grayscale has been attempting to launch a Bitcoin ETF for years, but the SEC has consistently rejected their efforts. The company even sued the agency last year. However, in late August, a U.S. Court of Appeals panel issued a unanimous decision that raised expectations of an imminent approval from the SEC.
Industry experts have pointed to early January as a likely timeframe for the SEC to grant approval. This date coincides with another deadline for a Bitcoin ETF application by crypto hedge fund Ark Invest, which is currently at the front of the approval queue. It remains uncertain whether the SEC will approve Ark Invest’s application first or issue approvals for a larger group of applicants simultaneously.
The approval process for crypto ETFs has been slow and complex, involving two separate approvals—one for exchanges to list the ETFs and another for individual companies to issue them. The SEC has already approved futures ETFs for Bitcoin and Ethereum, but these ETFs contain futures contracts rather than digital assets.
Grayscale’s spokesperson stated that the ETF application reflects the company’s commitment to converting its entire family of crypto investment products to ETFs.
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