SEC Delays Franklin, Grayscale Ethereum ETFs Again, Standard Chartered Unlikely to Pass in May
The U.S. Securities and Exchange Commission (SEC) has postponed the approval decisions for Franklin and Grayscale Ethereum spot ETFs on the 23rd. Standard Chartered Bank has also changed its previous prediction that approval would be granted smoothly in May.
Table of Contents
SEC Delays Franklin Ethereum Spot ETF
Documents show that the SEC has extended the review deadline for the Franklin Ethereum ETF to June 11, citing similar reasons to the previous delays of the Ark and Hashdex Ethereum spot ETFs:
The decision to delay the deadline is appropriate to allow the SEC enough time to consider the proposed rule changes and address the issues raised therein.
SEC Delays Ark and Hashdex Ethereum Spot ETFs, Bloomberg Analyst: May Approval No Longer Expected
Further Delay for Grayscale Ethereum ETF
The SEC also delayed the proposal review for the Grayscale Ethereum ETF on the 23rd, with the documents indicating an extended review deadline to June 23.
When the SEC opened public comments on the Grayscale Ethereum ETF, the following concerns were raised:
Is Ethereum proof of stake susceptible to manipulation by a few entities?
What are the views on Ethereum liquidity, transparency, and market sensitivity to manipulation?
What are the views on the correlation between the ETH spot market and CME ETH futures market?
Since CME ETH futures are related regulated markets, would bad actors also need to manipulate CME ETH futures to affect volatility?
Do the above characteristics raise concerns among the public about ETH being vulnerable to fraud and manipulation?
SEC Further Delays Grayscale Ethereum Spot ETF, Questions Raised on Susceptibility of Proof of Stake to Manipulation
Standard Chartered Changes Optimistic Stance
Standard Chartered Bank has ultimately changed its optimistic stance on the Ethereum ETF, despite many Bloomberg analysts believing the approval chances are slim, with the Standard Chartered analyst previously expecting approval by May 23.
Standard Chartered: Ethereum Spot ETF Still Possible in May, ETH Could Reach $8,000 by Year-End
According to a report by The Block, Geoffrey Kendrick, Head of Foreign Exchange and Digital Asset Research at Standard Chartered Bank, stated in the latest report:
We previously expected the SEC to approve the Ethereum ETF on May 23, but this expectation was based on "the Ethereum approval process being similar to Bitcoin ETFs," and constructive dialogues between the SEC and ETF applicants, which has not happened as of now or at least not publicly, indicating a low likelihood of approval in May.
Standard Chartered's view now aligns closely with Bloomberg analysts, that approval is more likely in the "long term," with Geoffrey Kendrick stating:
Rising Bitcoin prices will also boost ETH prices, and even if not approved in May, the global ETF environment is still improving, and we expect the U.S. to eventually approve the Ethereum ETF.