SEC Delays Decision on Grayscale's Ethereum ETF Application

Regulator seeks public comment on proposal, questioning Ethereum's proof of stake mechanism and potential for fraud.

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale's application to convert its Ethereum trust into an exchange-traded fund (ETF).
The SEC has also delayed decisions on similar applications by BlackRock and Fidelity.
The SEC has asked for public comments on the proposed Grayscale Ethereum Trust, specifically questioning Ethereum's proof of stake mechanism and potential susceptibility to fraud and manipulation.
The SEC's decision delays follow the recent approval of 10 Bitcoin ETFs.
Experts suggest that an approval for a spot Ethereum ETF could come as early as May.