The United States Securities and Exchange Commission (SEC) has opened the public comment period for three proposed Ethereum spot exchange-traded funds (ETFs), which has caused both excitement and doubt in the cryptocurrency community.
In a filing on April 2, the SEC said it planned to ask interested parties for their thoughts on the suggested rule changes. This is a very important step in the regulatory process for the ETH ETF plans made by Bitwise, Fidelity, and Grayscale. Bitwise and Grayscale want to be listed on the NYSE Arca, and Fidelity wants to trade on the Cboe BZX Exchange.
Even though there was initial excitement when Bitcoin ETFs were approved, experts in the field have become more cautious as the U.S. Securities and Exchange Commission has remained silent on Ethereum ETFs.
When he talked about the issue, Bloomberg analyst James Seyffart stressed how common it is for 19b-4 ETF filings to ask for public opinions. He clarified that this kind of process, whether for approval or rejection, doesn’t automatically mean that people are optimistic about Ethereum ETFs.
SEC’s Lack of Engagement Sparks Skepticism
ETH expert Eric Blachunas expressed doubt last month, giving spot ETH ETFs only a 25% chance of being approved, which is similar to Seyffart’s opinion. Balchunas said that the SEC’s lack of involvement seems planned rather than a result of putting things off, noting a lack of positive signs or intelligence in this area.
It’s important to remember that U.S. Securities and Exchange Commission Chair Gary Gensler warned in January not to use Bitcoin ETF decisions as a sign of how the SEC feels about other cryptocurrencies. The SEC’s probe into the Ethereum Foundation in March, which aimed to classify the cryptocurrency as a security possibly, shows how uncertain the regulatory situation is around Ethereum.
In response to these events, ConsenSys, the company that made MetaMask, has asked the SEC to recognize Ethereum’s advanced security features built into its design. The company that runs ConsenSys argues with the government that Ethereum is not easily hacked or used for fraud by pointing out how strong its framework is.
The U.S. Securities and Exchange Commission is expected to decide by May 23. The VanECK spot ether ETF will likely be the first of several filings ready to be approved or denied. ARK, 21 shares, and Hashdex are other contenders on the list.
As the cryptocurrency world deals with regulation issues, everyone is still on edge, waiting for the U.S. Securities and Exchange Commission decision on Ethereum ETFs. This decision could significantly impact the market and investors’ feelings.
