Search Inside Bitcoins

SEC Delays Decision On Grayscale’s Spot Ethereum ETF, Asks If It’s Susceptible To Manipulation And Fraud

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Michigan invested in two Grayscale Ethereum ETFs
Michigan invested in two Grayscale Ethereum ETFs

Join Our Telegram channel to stay up to date on breaking news coverage

The U.S. Securities and Exchange Commision (SEC) has again delayed its decision on Grayscale Investments’ proposal for a spot Ethereum ETF (exchange-traded fund), asking whether it would be susceptible to market manipulation and fraud.

The regulator made the announcement in a Jan. 25 order that asked whether Ethereum’s proof of stake mechanism and “concentration of control or influence by a few individuals or entities” raised unique concerns about manipulation and fraud.

The application is now open for public comment for 21 days. There will also be a rebuttal period of 35 days, according to the SEC’s filing.

SEC Boss Suggests Ethereum (ETH) Might Be Security Once Again

SEC Announces Delays For Multiple Spot Ethereum ETF Applications 

This is the second time the regulator has delayed its decision on Grayscale’s ETH ETF application, with the previous delay announced on Dec. 5. In the last week, the agency has also delayed making decisions for other proposed spot Ethereum ETFs by fund managers BlackRock and Fidelity.

In a Jan. 18 filing related to Fidelity’s application, the SEC wrote, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change and the issues raised therein.” This ensures that the SEC “has sufficient time to consider the proposed rule change and the issues raised therein, ” it added.

SEC’s Ethereum ETF Decision Delays Not Surprising

Bloomberg Intelligence ETF analyst James Seyffart said the SEC’s delays were “completely expected.” He also predicted that the delays will likely continue to happen sporadically in the short term, and highlighted the end of May will be a key period to watch.

This is when a batch of important decisions regarding spot Ethereum ETF applications by ARK, 21Shares and VanEck are set to take place, said the analyst in a Dec.15 interview

He said that he believes the SEC has already acknowledged ETH as a commodity, which he believes increases the probability of an Ethereum ETF receiving approval this year.

Related Articles:

Most Searched Crypto Launch - Pepe Unchained

Rating

Pepe Unchained
  • Layer 2 Meme Coin Ecosystem
  • Featured in Cointelegraph
  • SolidProof & Coinsult Audited
  • Staking Rewards - pepeunchained.com
  • $10+ Million Raised at ICO - Ends Soon
Pepe Unchained

Join Our Telegram channel to stay up to date on breaking news coverage

Read next

Please enter Coingecko Free Api Key to get this plugin works