SEC postpones decision on physical Ethereum ETF application | CoinDesk JAPAN

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Grayscale Investments’ application to convert its Ethereum trust product (ETHE) into an exchange-traded fund (ETF). A day earlier, the SEC took the same action regarding BlackRock, the world’s largest asset manager, regarding its application for a similar physical Ethereum ETF.

The SEC has previously opposed physical crypto ETFs, and in January allowed only physical Bitcoin ETFs to operate in the United States for the first time. The postponement of a decision on Grayscale’s application on the 25th is no surprise, as was the postponement of BlackRock’s application.

In preparation for the SEC’s approval of the Bitcoin spot ETF application, issuers and exchanges have submitted updated documents to address various questions from regulators. It is unclear whether the application for a physical Ethereum ETF has progressed to this stage.

But this week’s filing raises a number of questions for the public to weigh in on, including questions about whether a spot Ethereum ETF is similar to a spot Bitcoin ETF.

The filing asks, “Do commentators agree that the arguments in favor of listing Bitcoin exchange-traded products (ETPs) apply equally to equities?” and “Specific questions regarding Ethereum’s vulnerability to fraud and manipulation. Are there any specific characteristics associated with Ethereum and its ecosystem, such as proof-of-stake (PoS) consensus mechanisms or concentration of control and influence by a small number of individuals or entities, that raise concerns? is being carried out.

Other questions focused on market manipulation, whether there is a correlation between the spot and futures markets, and whether the CME futures market is of significant size. This is a similar question to the one you asked about.

｜Translation and editing: Rinan Hayashi
｜Image: Nikhilesh De/CoinDesk
｜Original text: Spot Ether ETF Applications Decisions Delayed by SEC