Summary
The Securities and Exchange Commission (SEC) has once again delayed its decision on Grayscale Investments’ proposal for a spot Ethereum ETF. The SEC has asked for fresh public comments and raised concerns about Ethereum’s proof of stake mechanism and concentration of control or influence by a few entities. The agency has also delayed decisions on other proposed spot Ethereum funds from BlackRock and Fidelity. Experts have mixed opinions on the possibility of a spot Ethereum ETF, but some believe an approval could come as early as May. Bloomberg Intelligence ETF analyst James Seyffart expects delays to continue.
Key Points
1. The Securities and Exchange Commission (SEC) has further delayed its decision on Grayscale Investments’ proposal for a spot Ethereum ETF, and has initiated proceedings to solicit fresh public comment.
2. The SEC has raised concerns about Ethereum’s proof of stake mechanism and the concentration of control or influence by a few individuals or entities, questioning whether these factors could make the fund susceptible to fraud and manipulation.
3. The SEC has also delayed making decisions on other proposed spot Ethereum funds, including those from BlackRock and Fidelity, leading to uncertainty among crypto experts about the possibility of a spot Ethereum ETF approval in the near future.