The SEC has initiated a public comment period for Ethereum-based exchange-traded funds proposed by Grayscale, Fidelity, and Bitwise.

This move comes after repeated delays in the decision process for Ethereum ETFs, despite the SEC's earlier approval of Bitcoin ETFs.

Ethereum's current market price is below its all-time high, with analysts doubtful about the Ethereum ETFs' approval by the May deadline.

The SEC has increased its regulatory scrutiny, including issuing subpoenas related to companies' interactions with the Ethereum Foundation.

There is a regulatory tension between the SEC's approach and the CFTC's commodities framework, which is applied to Bitcoin.

The SEC's postponement of decisions on ETFs from major firms like Fidelity and BlackRock highlights the regulatory hurdles for Ethereum-based financial products.