A new postponement of the SEC decision:
- The SEC is requesting public comments on Grayscale’s proposal for an Ethereum cash ETF.
- Concerns have been raised about Ethereum’s proof of stake.
- Decisions on other proposed Ethereum funds, including those from BlackRock and Fidelity, are also delayed.
SEC decision once again postponed
The US Securities and Exchange Commission (SEC) has once again postponed its decision on Grayscale Investments’ proposal for an Ethereum cash ETF.
This decision, announced on January 25, 2024, marks an extension in a series of delays concerning Ethereum-based ETFs, and it’s not going to stop anytime soon, at least not before May:
“Delays for the Ethereum ETF will continue to happen sporadically over the next few months. The next important date is May 23.”
Analyst Seyffart stated
The SEC has specifically requested public comments on how to proceed with the proposed Grayscale Ethereum Trust by the American giant. The focus is on Ethereum’s proof of stake mechanics and concerns about the “concentration of control or influence by a small number of individuals or entities.”
Ethereum futures ETFs are also concerned
Attention is also on Ethereum futures products in this report. Indeed, the agency has solicited comments for Ethereum ETH Futures, expected in 21 days, followed by a 35-day rebuttal period. This decision follows an initial SEC postponement on this proposal on December 5th.
In addition, the SEC has delayed decisions regarding other proposed Ethereum funds by major players like BlackRock and Fidelity.
Despite a mix of optimism and pessimism in the crypto community, some experts believe that approval of the Ethereum cash ETF by the SEC could occur as early as May, following the approval of Bitcoin cash ETFs earlier in the month.