SEC Delays VanEck Ethereum Spot ETF Again, Grayscale ETHE Discount Widens to 20%

Following Ark Invest and Hashdex, the SEC has once again delayed VanEck's Ethereum spot ETF application. In light of this news, the discount on Grayscale's Ethereum Trust Fund (ETHE), which also applied for conversion to an ETF, has expanded to 20%.

SEC Delays VanEck Ethereum Spot ETF Again

The U.S. Securities and Exchange Commission (SEC) has once again delayed the VanEck Ethereum Spot ETF, stating the need for public input and will make a decision by May 23, 2024.

The SEC had just delayed the Ark and Hashdex Ethereum Spot ETF the day before. As usual, the SEC cited that the extended deadline was appropriate to allow sufficient time for consideration of the proposed rule change and addressing issues raised within.

Bloomberg ETF analyst James Seyffart has taken a more pessimistic view on the likelihood of an Ethereum ETF approval. He pointed out that the SEC has not even contacted the issuer regarding issuance details, which is a complete contrast to last year's Bitcoin ETF. Therefore, their probability of approval by the end of May has been reduced to 30%.

Bloomberg Analyst: Probability of Ethereum Spot ETF Approval by May Reduced to 30%

Additionally, Fortune reported last night that the SEC is conducting a thorough investigation into Ethereum, speculating that this is not just a routine check, but the SEC may be considering classifying Ether as a security, a decision that could have a significant impact on the dream of issuing an Ethereum Spot ETF.

Fortune: SEC Scrutinizing Ethereum, Attempting to Classify ETH as a Security

Grayscale ETHE Discount Widens Again to 20%

Following the news of the delay in the Ethereum Spot ETF, the discount on Grayscale Ethereum Trust Fund (ETHE), which has applied for a conversion to an ETF, has widened to 20%.

Previously, the discount on Grayscale's Bitcoin Trust had once reached 44%, but investors who bet on its ETF approval last year not only profited from Bitcoin's rise but also earned an additional 40% price difference as the GBTC discount narrowed. With ETHE's discount widening again, could this be another investment opportunity?

This article is not investment advice. Please DYOR.