SEC Invites Public Input on Ethereum ETFs by Grayscale, Fidelity, and Bitwise

The U.S. Securities and Exchange Commission (SEC) has taken a significant step by inviting public comments on spot Ethereum ETF applications, which includes submissions from major players such as Grayscale, Fidelity, and Bitwise.

This move follows a similar call for public scrutiny on five spot Bitcoin ETF trusts, which eventually led to their approval. However, the optimism surrounding the potential approval of spot Ethereum ETFs has declined to a mere 25% positivity.

The SEC’s decision to seek public feedback on Ethereum ETF applications comes after the deferral of judgment on the VanEck spot Ether ETF application. The decision timeline has been pushed to May 2024 as the Commission requires more time for deliberation.

There is a limited three-week window for the public to provide their input on the Ethereum ETF applications from Grayscale, Fidelity, and Bitwise.

The recent announcement has sparked speculation about the fate of Ethereum ETFs, with Bloomberg ETF analyst James Seyffart expressing skepticism about their chances of approval.

In terms of market performance, Ethereum has experienced two consecutive days of decline since the beginning of April. However, there are signs of recovery today after reaching a low of $3,362 on Tuesday, reflecting a decline of over 6.7% from its previous support level.

The decline in Ethereum’s value was primarily triggered by Bitcoin’s depreciation of nearly 6% at the start of April. As a result, Ethereum saw total liquidations of $91.91 million, with long positions accounting for $75.1 million of the total.

Despite these fluctuations, historical data suggests that Ethereum typically performs well in the second quarter, with an average gain of 66.59%.

While the SEC’s approach mirrors the path taken before the approval of Bitcoin ETFs, including delays, rejections, appeals, and now public consultations, the final decision regarding Ethereum ETFs remains uncertain.