Ethereum ETF by Grayscale Delayed as SEC Awaits Public Input

The Securities and Exchange Commission (SEC) has extended its review period for the Ethereum exchange-traded fund (ETF) proposal submitted by Grayscale Investments. This move comes amidst similar delays for other proposed spot Ethereum funds from major players like BlackRock and Fidelity. The SEC’s decision to seek further public input marks a significant moment in the ongoing debate over cryptocurrency-based investment products.

Concerns Over Ethereum’s Proof of Stake

The SEC’s focus in this latest delay centers around Ethereum’s transition to a proof of stake mechanism. The regulator is keen to understand whether this change could lead to potential issues of fraud and manipulation within the proposed fund.

The agency has openly questioned the concentration of control or influence by a few entities or individuals in Ethereum’s network and its impact on the overall stability and security of the proposed ETF. These concerns underline the SEC’s cautious approach to the rapidly evolving cryptocurrency market.

With the SEC setting a 21-day deadline for public comments and an additional 35 days for rebuttals, the crypto community is keenly awaiting further developments.

The prolonged timeline for a decision, extending beyond previous deadlines, has sparked varied reactions from industry experts. Some remain hopeful for a positive outcome, especially following the recent approval of spot bitcoin ETFs. However, SEC Chair Gary Gensler’s recent comments suggest a more measured approach towards other crypto-linked exchange-traded products.

Expert Opinions on Ethereum ETF

As the market anticipates the SEC’s decision, opinions among crypto experts vary. Some are optimistic about a potential approval by May, drawing parallels with the recent approvals of spot bitcoin ETFs.

Others, however, remain skeptical, given the unique challenges and regulatory concerns surrounding Ethereum and its underlying technology. The consensus is a cautious optimism, with a recognition of the hurdles that lie ahead in gaining regulatory approval for such a novel financial product.

TAGS
Ethereum ETF

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.