{"id":475451,"date":"2024-01-26T11:48:59","date_gmt":"2024-01-26T11:48:59","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=475451"},"modified":"2024-01-26T11:48:59","modified_gmt":"2024-01-26T11:48:59","slug":"sec-delays-decision-on-grayscales-spot-ethereum-etf-asks-if-its-susceptible-to-manipulation-and-fraud","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/sec-delays-decision-on-grayscales-spot-ethereum-etf-asks-if-its-susceptible-to-manipulation-and-fraud","title":{"rendered":"SEC Delays Decision On Grayscale\u2019s Spot Ethereum ETF, Asks If It’s Susceptible To Manipulation And Fraud"},"content":{"rendered":"

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.<\/span><\/p>\n

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

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.<\/span><\/p>\n

\"SEC<\/p>\n

SEC Announces Delays For Multiple Spot Ethereum ETF Applications <\/span><\/h2>\n

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 <\/span>BlackRock<\/span><\/a> and <\/span>Fidelity<\/span><\/a>.<\/span><\/p>\n

In a Jan. 18 <\/span>filing<\/span><\/a> 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.<\/span><\/p>\n

SEC’s Ethereum ETF Decision Delays Not Surprising<\/span><\/h2>\n
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Fidelity #ethereum<\/a> ETF delayed just now. Completely expected. Dates that really matter are late May in my view. https:\/\/t.co\/8mvhcPRaS7<\/a><\/p>\n

— James Seyffart (@JSeyff) January 18, 2024<\/a><\/p><\/blockquote>\n