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The US Securities and Exchange Commission (SEC) has again delayed issuing a decision on Grayscale's application to launch an ethereum (eth) spot ETF.
According to a message in the regulator website, the Commission sought public comments on how the regulator should handle Grayscale's application. The SEC is interested in whether the eth – Proof-of-Stake (PoS) algorithm and the concentration of a large volume of ethereum in the hands of multiple people could make the fund vulnerable to fraud and manipulation.
The next application deadline is in May. The company first applied to launch a spot ethereum ETF in October 2023. The SEC published its first decision on the application on December 5, 2023. The deadline was January 25, 2024.
In addition to Grayscale's application for an ethereum spot ETF, the Commission previously expanded its examination of applications from Fidelity and BlackRock. The new deadline for the other two applications will be in March.
At the same time, journalists predict the adoption of spot ETF-ethereum by the summer of 2024. This will be preceded by a decision by the CFTC and SEC to recognize that the second largest cryptocurrency by capitalization does not meet a security status . .
Journalists suggested that such certainty could emerge during the trial with Binance. They referred to the previous meeting and noted that DAO tokens can be considered securities.
