With the success of the Bitcoin ETF approval by the SEC, anticipation grows for the approval of an Ethereum ETF. Despite the SEC’s deliberation period similar to that of Bitcoin, Ethereum’s increasing value raises expectations.
Several companies submitted proposals for Ethereum ETFs even before the approval of Bitcoin’s. This confidence in Ethereum stems from its status as the second-largest and most popular cryptocurrency. This blog explores the top three Ethereum ETF proposals and their potential approval.
Top Three Ethereum ETF Proposals: The Ethereum ETF topic has gained significant attention, with companies eagerly awaiting a positive response from the SEC. Grayscale Ethereum Trust, Fidelity Ethereum Fund, and Bitwise Ethereum Trust are leading the pack in proposing Ethereum ETFs.
Grayscale Ethereum Trust: Grayscale, a renowned investment firm offering cryptocurrency investment options, submitted its proposal for a Spot Ethereum ETF in October last year. The company filed the 19b-4 form in collaboration with NYSE to convert its Grayscale Ethereum Trust to a Spot Ether ETF.
Fidelity Ethereum Fund: Part of Fidelity Digital Assets, a subsidiary of Fidelity Investments, the Fidelity Ethereum Fund was among the first to apply for crypto ETF approval. Fidelity filed for the Spot Ether ETF in March through an S-1 application.
Bitwise Ethereum Trust: A major crypto index fund manager, Bitwise recently filed for an Ethereum ETF. However, the company requested the SEC to postpone approval until December for better chances of success.
SEC Seeks Community Input on Top Ethereum ETF Proposals: On April 2nd, the SEC requested public opinions on the proposed Spot Ether ETFs by Grayscale, Fidelity, and Bitwise. A 21-day period was given for community feedback, which will significantly influence the SEC’s decision.
Speculations and Challenges: Bloomberg analysts have expressed reduced optimism, estimating the approval chances of a Spot Ethereum ETF at 35%. While the SEC’s inquiry offers hope, delays in the decision have left uncertainty in the market.
Prospects for Ethereum ETF Approval: While the SEC’s decision is pending until the end of May, there is optimism fueled by the CFTC’s classification of Ethereum as a commodity. If the SEC aligns with this classification, Ethereum ETF approval by May becomes more plausible.