All focus is on the United States Securities and Exchange Commission (SEC), as it initiates a period for public commentary on three proposals for Ethereum spot exchange-traded funds (ETFs).
“The Commission is issuing this notification to solicit feedback on the proposed rule amendment from interested parties,” the submission stated.
As disclosed in announcements on April 2, the U.S. regulatory body has designated a 21-day window for feedback on ETH ETF proposals from Bitwise, Fidelity, and Grayscale. Specifically, Bitwise and Grayscale are seeking listing on NYSE Arca, while Fidelity aims for trading on the Cboe BZX Exchange.
Following the groundbreaking introduction of Bitcoin ETFs, industry experts initially anticipated approval for Ethereum ETFs. However, optimism has waned as the SEC has maintained a stance of non-disclosure.
Bloomberg analyst James Seyffart noted, “Soliciting public comments on a 19b-4 is standard protocol. Every 19b-4 ETF filing undergoes the same process, whether approved or denied. It does not indicate bullish sentiment towards Ethereum ETFs.”
ETH analyst Eric Balchunas shared similar sentiments last month, estimating a mere 25% likelihood of spot ETH ETF approval.
SEC Chair Gary Gensler cautioned in January that the commission’s approval of Bitcoin ETFs should not reflect its stance on the legal status of other cryptocurrencies. Subsequently, the SEC initiated an inquiry into the Ethereum Foundation in March with the intent of categorizing the cryptocurrency as a security.
Against this backdrop, ConsenSys, the creator of MetaMask, has urged the SEC to acknowledge the enhanced security measures embedded in Ethereum’s design. The firm contends that the regulator’s concerns about Ethereum’s vulnerability to fraud and manipulation are unfounded.
The SEC is anticipated to announce its decision by May 23, with the VanECK spot ether ETF expected to be the first under review. Additional filings awaiting consideration include those from ARK, 21 shares, and Hashdex.