SEC delays decision on Grayscale's proposal for spot Ethereum ETF again, with order to institute proceedings and seek public comment
Quick Take
- The agency asked for public comments on Thursday on how to move forward with the proposed Grayscale Ethereum Trust.
The Securities and Exchange Commission has again delayed its decision timeline on a proposal from Grayscale Investments for a spot Ethereum 
ETH
-2.56%
ETF, with a Thursday order to institute proceedings and solicit fresh public comment.
The SEC specifically asked whether Ethereum's proof of stake mechanism and "concentration of control or influence by a few individuals or entities" could bring up unique concerns to make the fund susceptible 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.
The regulator first delayed its decision on the proposal on Dec. 5.
Additional delays
The agency has also delayed making decisions for other proposed spot Ethereum funds including BlackRock and Fidelity over the past week.
Crypto experts have been both optimistic and pessimistic that a spot ether ETF is on the horizon, and 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. Next date that matters is May 23rd," Seyffart said in a post on X, earlier this week.
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