- The SEC has delayed its decision again on Grayscale’s proposed spot Ethereum ETF, asking for more public comment and posing questions about Ethereum’s proof-of-stake mechanism and concentration of control.
- The SEC also asked about Ethereum futures products in its filing. Comments are due in 21 days with a 35 day rebuttal period.
- Crypto experts have mixed views on whether a spot Ethereum ETF will be approved soon, with some optimistic approval could come by May but others predicting more delays over the next few months.
The Securities and Exchange Commission (SEC) has delayed its decision timeline again on a proposal from Grayscale Investments for a spot Ethereum ETF. On Thursday, the agency issued an order to institute proceedings and solicit fresh public comment.
The SEC’s Key Questions
The SEC specifically asked whether Ethereum’s proof-of-stake mechanism and concentration of control or influence by a few individuals or entities could raise unique concerns about the fund’s susceptibility to fraud and manipulation.
The agency also posed questions about Ethereum futures products in its filing. Comments are due in 21 days, with a rebuttal period that lasts 35 days, the SEC said.
Additional Delays
The regulator first delayed its decision on the proposal on December 5. The agency has also delayed making decisions for other proposed spot Ethereum funds, including from BlackRock and Fidelity, over the past week.
Crypto experts have been both optimistic and pessimistic that a spot ether ETF is on the horizon. Some think an approval from the SEC could come as early as May following the approval of spot bitcoin ETFs earlier this month.
Bloomberg Intelligence ETF analyst James Seyffart has said delays for spot Ethereum ETFs will likely continue. “Spot Ethereum ETF delays will continue to happen sporadically over the next few months,” Seyffart said earlier this week. “Next date that matters is May 23rd.”
