Spot Ethereum ETF: Applicants Meet SEC But Rejection Fear Remain

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Ethereum ETF SEC Meeting

Nate Geraci, the president of The ETF Store has revealed that a handful of spot Ethereum ETF filers have met with the United States Securities and Exchange Commission (SEC) to discuss the modalities of the proposed offering. 

Uncertainty Looms Amid Approaching Spot Ethereum ETF Deadline

Geraci highlighted a post from Senior Bloomberg writer Joe Light who stated that the spot Ethereum ETF applicants’ discussions with the SEC have been largely one-sided. 

It has become general knowledge that the agency has failed to provide the “critical” feedback necessary for these filers to finalize their products. Hence, there are fears that the May 23 deadline for a Ethereum ETF approval may not be a reality.

Rather than give its feedback on the numerous flings from BlackRock, Grayscale, and Bitwise, the agency is awaiting comments on this rule change proposal. To this end, the agency has initiated a public comment period for some of the proposed spot Ethereum ETFs. The three-week deadline for these comments is notably still open.

Bloomberg ETF analyst Eric Balchunas jumped on the conversation and stated that the actions taken by the SEC have not done anything to influence the odds of a spot Ethereum approval. According to the analyst, all the Commission needs to do now is to provide critical feedback to the applicants that are earnestly waiting for its decision.

Approval Odds Plunges

Odds pooled recently from Polymarket gamblers suggest that investors are double-minded about the possibility of receiving approval from the SEC. The data from the prediction platform shows an obvious division among these gamblers, positioning the odds of spot Ethereum ETF approval at 45%. 

Even Balchunas has adjusted his outlook on the approval probability of a spot ETH ETF by May. Precisely, he lowered his estimate from 70% to 30%, reflecting growing skepticism among investors. Another senior Bloomberg ETF analyst James Seyffart, believes strongly that the SEC’s silence in this matter, particularly to Fidelity’s filing, does not mean well for the proposed rule change.

The potential “securities’ tag on Ethereum is one of the fears that investors have about the possibility of getting the SEC approval. However, BlackRock CEO Larry Fink believes spot Ethereum ETF might still become a reality despite the securities tag the SEC is looking to place on ETH.

The post Spot Ethereum ETF: Applicants Meet SEC But Rejection Fear Remain appeared first on CoinGape.

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