SEC Postpones Grayscale Ethereum Spot ETF Again, Raising Concerns over Potential Manipulation of Proof of Stake by Few Entities?

SEC Delays Grayscale Ethereum Spot ETF Again
Bloomberg analyst: 60% Chance of Approval
Does Grayscale Lawsuit Affect SEC Decision?

SEC Delays Grayscale Ethereum Spot ETF Again
According to official documents, the U.S. Securities and Exchange Commission (SEC) has once again delayed the Grayscale Investments Ethereum Spot ETF, following the delay on December 5th last year, this time until January 25th, while opening it up for public comments.

SEC raised the following concerns in guiding public comments:
Is Ethereum’s proof-of-stake vulnerable to manipulation or influence by a few entities?
What are the views on ETH liquidity, transparency, and market sensitivity to manipulation?
What are the views on the correlation between the ETH spot market and the CME ETH futures market?
Do wrongdoers need to manipulate the CME ETH futures to affect volatility, given that it is a regulated market?
Do the above characteristics raise concerns among the public about the susceptibility of ETH to fraud and manipulation?

SEC stated that comments must be submitted within 21 days, and the rebuttal period will last for 35 days. Recently, SEC also postponed the BlackRock Ethereum ETF.

Bloomberg Analyst: 60% Chance of Approval
Regarding the likelihood of the Ethereum Spot ETF being approved, Bloomberg ETF analyst James Seyffart told Blockworks:
I basically think there’s a 60% chance that SEC approves all Ethereum Spot ETFs, but they have many ways to delay it. Therefore, if SEC wants to be prepared and wants all issuers to proceed simultaneously, SEC is likely to approve it on May 23rd, unless SEC can find a way to reject or delay the entire process.
On the other hand, if it doesn’t pass on May 23rd, James Seyffart believes it will have to wait until 2025.
In November last year, James Seyffart predicted a 90% chance of approval for Bitcoin Spot ETFs.

Does Grayscale Lawsuit Affect SEC Decision?
In addition to BlackRock and Grayscale, Ark 21Shares and VanEck are also seeking Ethereum ETFs, and May 23rd is the 240-day window period for SEC to approve or reject the proposals from Ark/21Shares and VanEck.
Scott Johnsson, partner at venture capital firm Van Buren Capital, pointed out that the victory in the Grayscale lawsuit will still play a role in the approval of Ethereum ETFs:
It can be said that this ruling has opened the door for BTC, and it has also put SEC in a logical dilemma.

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Ethereum Spot ETF
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