The US Securities and Exchange Commission (SEC) has delayed decisions on two proposed changes with regard to crypto exchange-bound funds (ETFs), as a result of which the assessment periods for both deployment and in kind redemption models are expanded until June 2025.
The new timelines apply to the Ethereum (ETH) of Grayscale (ETH) and Vaneck reports for repayments in kind on Bitcoin (BTC) and Ether ETFs.
Decision delayed
On April 14, the SEC issued a notification with the designation of 1 June 2025, as the new deadline to determine whether the request for the New York Stock Exchange (NYSE) request on Grayscale’s ETF should approve, reject or initiate the procedure (NYSE).
The proposal would allow the Grayscale Ethereum Trust Etf (Ethe) and the Grayscale Ethereum Mini Trust ETF (ETH) to use part of the ETH in custody.
The exchange initially submitted the change on 14 February and was published in the Federal Register on 3 March. It established a first 45-day decision deadline before April 17.
The committee extended the assessment period under section 19 (B) (2) of the Securities Exchange Act of 1934, with reference to the need for more time to evaluate the rule change and associated issues.
In kind
On the same day, the SEC also postponed its decision on a separate proposal from CBOE BZX exchange with regard to creations in kind and repayments for the Vaneck Bitcoin Trust (HODL) and Vaneck Ethereum Trust (ETHV).
The amendment, submitted on 19 February and published on 5 March, could revise the conditions, including shares of the trusts, created and exchanged with the help of digital assets instead of cash money.
The first 45-day assessment period would end on April 19, but the committee extended it until 3 June to consider further.
According to Federal Archives, the Commission has not yet received public comments on both proposal.
The Deadlines of June now offer an extensive window for internal assessment whether the potential initiation of the procedure to further evaluate compliance with the proposals of the applicable securities laws.
