ETF Ethereum Spot: The SEC Wants to Hear from the Public!

The decision of the Securities and Exchange Commission (SEC) regarding the Ethereum Spot ETF applications is expected in May. Until then, the regulator follows a procedure that requires considering the public’s opinions and concerns before making a ruling. This was notably the case for Bitcoin Spot ETFs.

The Ethereum Spot ETF case is moving forward…

The latest news suggests that the issue regarding the approval of Ethereum Spot ETF applications has progressed. Indeed, according to recent information, the SEC has called on the public to submit their comments on three of the Ethereum Spot ETF applications submitted to the institution.

This call relates to applications presented by asset managers Bitwise, Fidelity, and Grayscale. It gives the public 21 days, from the announcement’s publication in the official daily journal of the US government, to submit their comments on these proposals.

According to analysts, this development is significant. It indicates that the SEC is actively preparing to make a final decision on these Ethereum ETFs. This decision is expected to be made in May, especially concerning VanEck’s application.

Experts believe that the application submitted by this asset manager, scheduled for review on May 23, is likely to be the SEC’s priority. Only once this case is resolved will the financial regulator turn to applications submitted by Hashdex and ARK 21Shares.

U.S. SEC Calls for Comments on Spot ETH ETFs

The ETF efforts tied to Grayscale Investments, Fidelity, and Bitwise will be subjected to a three-week comment period, according to notices posted Tuesday by the agency https://t.co/0JOq6jqniV

— Jimie (@Your_NLP_Coach) April 3, 2024

In a Context of Total Uncertainty

It should be noted that the SEC’s willingness to consider Spot Ethereum ETFs could be interpreted as good news. However, one should not be mistaken, as this does not necessarily mean approval is imminent.

This also does not mean that the market is optimistic about their potential. In fact, even optimism towards them can be tempered by regulatory considerations and broader market concerns.

It must be remembered that if there are uncertainties about the SEC’s decision-making process, it is due to investigations against the Ethereum Foundation. These investigations were carried out against the backdrop of classifying ether (ETH) as a security.

Consensys, a leading crypto company, contested these investigations in a comment letter to the SEC. In this letter, it dismisses concerns over potential fraud or market manipulation associated with Spot Ethereum ETFs.