Spot Ethereum ETFs Are Now Asked By The SEC For Public Feedback As May 24 Is Coming

Key Points:

• The SEC is seeking public feedback on proposed spot Ethereum ETFs, including those from Fidelity and Grayscale.
• Optimism regarding ETF approval by May 24 is waning, with delays in the SEC’s decision on filings from firms like Fidelity and BlackRock.
• Despite market pessimism, the SEC’s move to solicit comments hints at a potential shift.

The U.S. Securities and Exchange Commission (SEC) has initiated public comments regarding several proposed spot Ethereum ETFs, as outlined in recently submitted documents.

Read more: Spot Ethereum ETF vs. Ethereum Futures ETF: Which Is The Better Investment?

SEC Seeks Feedback on Spot Ethereum ETFs

Among these ETFs are the Fidelity Ethereum Fund and the Grayscale Ethereum Trust. The agency, through a filing about Bitwise, stated its intent to gather feedback on the proposed rule change, with the comment period set at three weeks.

This development occurs amid fading optimism regarding the approval of spot Ethereum ETFs by May 24. Fidelity, BlackRock, and seven other firms await the SEC’s decision on their ETF filings, yet progress toward a final verdict seems stalled.

Notably, the SEC deferred its decision on Fidelity and BlackRock’s applications, with limited comments provided on the review process, which diverges from spot Bitcoin ETFs.

SEC’s Call for Comments Stirs Hope

The market reaction to Ethereum Dencun upgrade on March 13, aimed at reducing transaction fees, led to an over 12% drop in Ether’s value. The approval of spot Ethereum ETFs by the SEC is anticipated to have significant implications, analogous to the boost experienced by institutional demand following the approval and launch of U.S. spot Bitcoin ETFs.

Despite the prevailing pessimism attributed to the SEC’s lack of engagement with the ETF applications, the recent move to solicit public comments may reignite hope within the cryptocurrency and ETF communities. This initiative signals a potential shift in regulatory stance, prompting renewed anticipation regarding the future of spot Ethereum ETFs.