SEC Requests Public Input on Proposed Grayscale, Bitwise, and Fidelity Ethereum ETFs

  • Regulatory uncertainty surrounding Ethereum ETF proposals is affecting market sentiment. 
  • Analysts, such as Eric Balchunas and James Seyffart, express concerns over the SEC’s silence and lack of substantive changes in filings, leading to a revision of estimates regarding the likelihood of approval. 

The U.S. Securities and Exchange Commission (SEC) has opened the floor for public commentary on several proposed exchange-traded funds (ETFs) related to Ethereum, as per official filings.

In a move announced on Tuesday, the regulatory agency initiated a call for feedback on three ETFs: the Fidelity Ethereum Fund, Grayscale Ethereum Trust, and Bitwise Ethereum Trust.

“The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons,” stated the SEC in reference to the Bitwise filing.

Interested parties have 21 days to submit their comments regarding all three proposals.

However, hopes for the swift approval of these products have diminished, as indicated by Bloomberg analysts. The absence of a response from the SEC is seen as a negative signal by industry experts.

Bloomberg ETF analyst Eric Balchunas has revised his estimate of the likelihood of a spot Ethereum ETF approval by May, lowering it from approximately 70 percent to 30 percent.

James Seyffart, another Bloomberg ETF analyst, shared his insights on Tuesday regarding Fidelity’s filing, expressing concern about the lack of substantive changes indicated in the documents.

“I’ve been tagged in this tweet and bunch of others regarding the 19b-4 documents filed for the #Ethereum ETFs today. Nothing in the filings signal to me that anything has changed,” Seyffart remarked. “Silence from the SEC isn’t a good thing here.”

As the regulatory process unfolds, market observers eagerly await further developments regarding the potential introduction of Ethereum-focused ETFs, which could have significant implications for the cryptocurrency industry.

SEC Opens Public Input on Ethereum ETF Proposals

The U.S. Securities and Exchange Commission (SEC) has initiated a public commentary period on proposed Ethereum exchange-traded funds (ETFs), including those from Fidelity, Grayscale, and Bitwise. Despite hopes for swift approval, analysts indicate growing skepticism, with concerns raised over the SEC’s silence and lack of substantive changes in filings. Market observers await further developments with anticipation, recognizing the potential significance of Ethereum-focused ETFs for the cryptocurrency industry.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Lalit Mohan

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