The U.S. Securities and Exchange Commission (SEC) has initiated a public comment period for several proposed spot Ethereum Exchange-Traded Funds (ETFs). The notice focuses on ETFs, including the Fidelity Ethereum Fund, Bitwise Ethereum Fund, and the Grayscale Ethereum Trust.
SEC Seeks Feedback on Ethereum ETF
The SEC has also indicated that it will seek comments on this rule change proposal and specifically referenced the Bitwise filing. The agency gives a three-week deadline for public comments. This move demonstrates that the SEC is interested in continued scrutiny of these new financial products.
The call for public comments comes at a time when the crypto community’s hopes for the approval of spot Ethereum ETFs start to fade away. Time is running out for the decision of the SEC on Fidelity, BlackRock, and seven other firms’ applications, and there has not been much progress.
The market did not take kindly the Ethereum Dencun update on 13th March, aimed at reducing transaction fees, which led to a more than 12% fall in the value of Ether. The approval of spot Ethereum ETFs is anticipated to have a substantial effect, just like the increase in the demand of institutions for the launch of the U.S. spot Bitcoin ETFs.
Yet, SEC’s deferral of the decision on Fidelity and BlackRock’s requests and scarce discussion of the assessment procedure escape the vigilance. This is in contrast to the procedure for spot Bitcoin ETFs, and it brings up the issue of the regulatory barriers associated with Ethereum financial products.
Analyst Perspectives on ETH ETF
Bloomberg ETF analyst Eric Balchunas adjusted his outlook on the approval probability of a spot Ethereum ETF by May. He lowered his estimate from 70% to 30%, reflecting growing skepticism among investors.
James Seyffart, another Bloomberg ETF analyst, commented on the silence from the SEC regarding Fidelity’s recent filings. He suggested that the lack of communication could bode better for the approval process. Seyffart’s analysis underscores the challenges facing the approval of spot Ethereum ETFs.
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The post Spot Ethereum ETF: US SEC Seeks Public Input on Multiple Offerings appeared first on CoinGape.
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