Grayscale has applied for a futures ETF (Exchange Traded Fund) for the largest altcoin by market value, but did not receive the response it hoped for today. As January approaches, expectations are growing for the SEC to approve spot BTC ETFs. However, the SEC today postponed its decision on previously approved ETH futures ETFs.
The two Ethereum futures contracts initiated by Grayscale aimed to track the ETH price futures of the Chicago Mercantile Exchange. One represented 50 Ether, while the other represented 0.10 Ether. Futures ETFs are indexed to CME option contracts, and there are already various approved products for BTC and ETH.
In its announcement today, the SEC stated that it would conduct additional analyses to “prevent fraudulent and manipulative acts” and “protect investors and the market.” The Commission is seeking responses to the following five questions from those who wish to comment on the proposed rule change.
Regarding the ETH approval, the SEC is seeking commentators’ views on issues such as the protection of investors and the market, the susceptibility of Ether futures to fraud and manipulation, the consensus mechanism, and the concentration of control or influence by a few individuals or organizations.
The Commission is requesting that interested parties submit their views, data, and arguments in writing on the aforementioned topics, as well as express any other concerns they may have regarding the proposal. It is thought that the approvals are delayed due to the SEC’s confusion over the transition to PoS (Proof of Stake).
