US SEC Solicits Views On Ethereum ETF Variants

The U.S. Securities and Exchange Commission (SEC) has commenced a period for public commentary concerning multiple proposed Ethereum Exchange-Traded Funds (ETFs). The announcement is centered on ETFs such as the Fidelity Ethereum Fund, Bitwise Ethereum Fund, and Grayscale Ethereum Trust.

The SEC has signaled its intention to solicit feedback on the proposed rule change, notably citing the Bitwise filing. The agency has set a three-week timeframe for public comments, showcasing its ongoing commitment to closely monitoring these emerging financial products.

The request for public feedback coincides with dwindling optimism among the cryptocurrency community for spot Ethereum ETF approval. There hasn’t been any progress towards the SEC’s judgement on the applications from Fidelity, BlackRock, and seven other corporations, and time is running out.

The Ethereum Dencun upgrade on March 13th tried to lower transaction fees. But the market did not like this. Ether’s value dropped by more than 12%. Experts think that the approval of spot Ethereum ETFs will have a big impact. This is similar to how institutions’ demand for U.S. spot Bitcoin ETFs has increased.

SEC Delay Sparks Concerns On Ethereum ETF Approval

However, the SEC’s postponement of the verdict regarding Fidelity and BlackRock’s appeals, coupled with the limited discourse on the evaluation process, eludes scrutiny. This disparity with the process for immediate Bitcoin ETFs raises concerns about the regulatory hurdles linked to Ethereum financial instruments.

Bloomberg ETF analyst Eric Balchunas revised his perspective on the likelihood of a spot Ethereum ETF gaining approval by May. He downgraded his previous estimate from 70% to 30%, citing increasing skepticism among investors.

James Seyffart, an ETF analyst at Bloomberg, remarked on the absence of feedback from the SEC concerning Fidelity’s recent submissions. He hinted that this lack of communication might actually signal a smoother approval process. Seyffart’s assessment highlights the obstacles in obtaining approval for spot Ethereum ETFs.

Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.