SEC Seeks Public Input on Ethereum ETF Proposals by Grayscale, Fidelity, and Bitwise
The U.S. Securities and Exchange Commission (SEC) has requested public input on the applications for spot Ethereum ETFs, including those submitted by Grayscale, Fidelity, and Bitwise.
This request is significant, as it mirrors a similar call for public review on five spot Bitcoin ETF trusts before Bitcoin ETFs were eventually approved. However, the optimism surrounding the approval of spot Ethereum ETFs in May 2024 has diminished to just 25%.
Update on Ethereum ETFs
The SEC’s request for public comment on Ethereum ETF applications comes after it postponed its decision on the VanEck spot Ether ETF application to May 2024. The Commission extended the review period, stating the need for more time to consider the proposed rule change.
The SEC’s request for public comment on the Ethereum ETF applications from Grayscale, Fidelity, and Bitwise will only be open for three weeks.
According to the SEC’s filing, “The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons.”
This development has sparked speculation about the fate of Ethereum ETFs, with James Seyffart, an ETF analyst at Bloomberg, expressing doubts about their approval.
In February, the SEC sought public feedback on spot Bitcoin ETFs before granting approval in March. This similar approach by the SEC in deciding on a cryptocurrency exchange-traded fund may instill greater optimism among community members regarding the approval of spot Ethereum ETFs.
Ethereum Price
Examining price movements, Ethereum experienced two consecutive days of decline at the beginning of April before rebounding today. On Tuesday, Ethereum dropped to a low of $3,362, marking a 6.7% decrease from its previous support level.
The decline in Ethereum was largely triggered by Bitcoin’s nearly 6% loss in value at the start of April after seven months of positive performance. The total liquidations in Ethereum amounted to $91.91 million, with long positions accounting for $75.1 million.
Nevertheless, historical data indicates that Ethereum has historically performed well in the second quarter, with an average gain of 66.59%.
While the SEC’s decision-making process, involving delays, rejections, appeals, and requests for public comments, aligns with the historical pattern preceding the approval of Bitcoin ETFs, the final outcome remains uncertain. The decision will likely shape the future landscape of Ethereum ETFs.
Tags: Ethereum