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

SEC Delays VanEck’s Ethereum Spot ETF Application Again
GreyScale’s Ethereum Trust Fund ETHE’s Discount Widens to 20%
The U.S. Securities and Exchange Commission (SEC) has once again delayed VanEck’s application for an Ethereum spot ETF, stating the need for public input and a decision to be made by May 23, 2024.
Just one day prior, the SEC also delayed the Ark and Hashdex Ethereum spot ETFs. As usual, the SEC cited the appropriateness of the delay period in order to consider proposed rule changes and address any issues raised.
Bloomberg ETF analyst James Seyffart has a more pessimistic view on the approval likelihood of an Ethereum ETF. He points out that the SEC hasn’t even contacted issuers regarding issuance details, which is in complete contrast to last year’s Bitcoin ETF. Therefore, they have lowered the probability of approval by the end of May to 30%.
Furthermore, Fortune reported last night that the SEC is conducting an in-depth investigation into Ethereum and speculates that this is not just a routine check. The SEC may be considering classifying Ether as a security, which could have a significant impact on the dream of an Ethereum spot ETF.
In light of the news of the further delay of the Ethereum spot ETF, GreyScale’s Ethereum Trust Fund ETHE, which also applied for a transformation into an ETF, has seen its discount widen to 20%.
The discount of GreyScale’s Bitcoin Trust Fund has previously reached as high as 44%, but investors who bet on the success of its ETF last year not only profited from the rise in Bitcoin’s value, but also from the narrowing discount of GBTC, earning an additional 40% price difference. With ETHE’s discount widening again, could this be another investment opportunity?
(Note: This article is not investment advice, please DYOR)
ETHE
VanEck
Ethereum spot ETF
GreyScale