In order to institute processes and gather more public input, the Securities and Exchange Commission on Thursday postponed its decision-making timeframe regarding a proposal from Grayscale Investments for a spot Ethereum ETF once more.
The SEC explicitly inquired as to whether Ethereum’s “concentration of control or influence by a few individuals or entities” and proof of stake method would raise special issues that could expose the fund to manipulation and fraud.
In its filing, the agency also raised concerns with Ethereum futures contracts. According to the SEC, comments are due in 21 days, followed by a 35-day time for reply.
Dec. 5 was the first day the regulator postponed making a decision on the plan.
Over the past week, the agency has also postponed making decisions regarding other suggested spot Ethereum funds, such as BlackRock and Fidelity.
After the SEC approved spot bitcoin ETFs earlier this month, cryptocurrency experts have expressed mixed feelings about the prospect of a spot ether ETF. Some believe an approval may come as early as May.
Spot Ethereum ETF delays are expected to persist, according to James Seyffart, an ETF analyst for Bloomberg Intelligence.
“Over the coming months, there will still be occasional delays for the spot Ethereum ETF. May 23rd is the next important date, according to a post made by Seyffart on X earlier this week.