The
U.S.
Securities
and
Exchange
Commission
delayed
an
application
by
Grayscale
Investments
to
convert
its
Ethereum
trust
product
(ETHE)
into
an
exchange-traded
fund
(ETF).
One
day
earlier,
the
agency
did
the
same
regarding
BlackRock’s
application
for
a
similar
vehicle.
The
SEC
has
traditionally
opposed
spot
crypto
ETF
products,
only
allowing
a
flurry
of
spot
bitcoin
ETFs
to
go
live
in
the
U.S.
for
the
first
time
earlier
in
January.
Thursday’s
delay
of
any
decision
on
Grayscale’s
application
is
unsurprising,
as
is
its
delay
of
the
BlackRock
bid.
In
the
run-up
to
the
SEC
approving
spot
bitcoin
ETF
applications,
issuers
and
exchanges
began
filing
updated
documents
addressing
various
questions
from
the
regulator.
It’s
unclear
whether
the
spot
ethereum
ETF
applications
have
progressed
to
this
stage.
However,
this
week’s
filings
pose
a
number
of
questions
for
the
general
public
to
weigh
in
on,
including
one
about
whether
a
spot
ethereum
ETF
might
be
similar
to
a
spot
bitcoin
ETF.
“Do
commenters
agree
that
arguments
to
support
the
listing
of
Bitcoin
ETPs
apply
equally
to
the
Shares,”
the
filing
asked.
“Are
there
particular
features
related
to
ETH
and
its
ecosystem,
including
its
proof
of
stake
consensus
mechanism
and
concentration
of
control
or
influence
by
a
few
individuals
or
entities,
that
raise
unique
concerns
about
ETH’s
susceptibility
to
fraud
and
manipulation?”
Other
questions
focus
on
market
manipulation,
whether
spot
and
futures
markets
are
correlated
and
whether
the
CME
futures
market
is
of
significant
size
–
similar
questions
to
those
the
SEC
has
asked
about
bitcoin
when
reviewing
those
applications.