The U.S. Securities and Exchange Commission postponed a decision on whether to approve Grayscale Ethereum Futures Trust's Ethereum ETF application, the agency said in a document filed on Friday. Its new deadline is May 30.

The Securities Exchange Act of 1934 gives the agency has 180 days or six months from when notice of the proposed rule change is published. The Grayscale application was first filed in September, and the agency deferred making a decision in November.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC said, echoing previous announcements.

Bitcoin and Ethereum ETFs are a type of investment fund that tracks the price of digital assets and is traded on traditional stock exchanges, providing investors a taste of crypto without requiring them to hold tokens directly. A futures EFT focuses on the future price of the asset, versus a spot ETF that tracks the current price in real time.

In January after approving 11 Bitcoin ETFs, the SEC delayed its decisionmaking on spot Ethereum ETF application from Grayscale and BlackRock. The next month, the SEC delayed its decision on a joint spot Ethereum ETF application from investing firms Invesco and Galaxy Digital.

While the SEC’s decision on Grayscale's Ethereum futures ETF may disappoint cryptocurrency investors and enthusiasts, some say the agency's delay is a good thing, allowing for greater adoption of Bitcoin ETFs.

“Spot Ethereum ETFs will gather more assets if they launch in December versus if they launch in May,” Bitwise Chief Information Officer Matt Hougan said on Twitter. on Tuesday “TradFi needs more time to digest the Bitcoin ETFs.”

The SEC's postponing its Ethereum ETF decision adds to negative pressure pushing the price of Ethereum down. On Friday, Ethereum was down 10.4% for the week and is currently trading at $3,289, according to Coingecko.

Edited by Ryan Ozawa.