The US Securities and Exchange Commission (SEC) has again postponed a decision related to a proposal for an Ethereum (ETH)-based exchange-traded fund (ETF) from Grayscale Investments. In an order on January 25, he urged the initiation of proceedings and the request for further public comment.
The regulator questioned whether Ethereum’s proof-of-stake mechanism and the “concentration of control or influence by a few individuals or entities” could lead to concerns about the fund becoming susceptible to fraud and manipulation.
Furthermore, in the process the SEC asked questions about future Ethereum products. According to the rapporteur, comments will have a period of 21 days to be made, with a refutation period of 35 days.
It is worth remembering that the SEC postponed Grayscale Investments’ Ethereum ETF proposal last month. In a document filed on December 5th, the regulator claimed the postponement highlighting the extension of the deadline for a decision related to the proposal by 45 days, that is, until January 25th.
SEC Postpones Decision on BlackRock’s Ethereum ETF
The United States Securities and Exchange Commission (SEC) has postponed its decision on BlackRock’s Ethereum Spot Index Fund (ETF) proposal, an important step that, if approved, will provide investors with direct access to the second-largest cryptocurrency , Ethereum. BlackRock, one of the world’s largest asset managers, plans to transform its existing trust into a cash ETF. Unlike futures-based ETFs, this fund will directly own Ethereum (ETH), offering a more direct investment option in the cryptocurrency.
The SEC’s decision to delay comes in the context of regulatory concerns about the cryptocurrency spot market. Historically, the SEC has expressed concerns about the possibility of fraud and manipulation in this market. The approval of BlackRock’s Ethereum ETF could signal a significant shift in the regulator’s stance toward more directly held crypto assets.
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