SEC Seeks Public Input on Several Spot Ethereum ETFs Applications

• The public is given three weeks to comment by the agency. 
• Regulatory hurdles related to Ethereum financial products are raised by this approach.

There are a number of potential spot Ethereum ETF applications that the U.S Securities and Exchange Commission (SEC) has opened for public comment. Its primary emphasis is on exchange-traded funds (ETFs), particularly the Grayscale Ethereum Trust, Bitwise Ethereum Fund, and Fidelity Ethereum Fund.

Additionally, the SEC has made note of the Bitwise submission and said that it will solicit feedback on this proposed rule change. The public is given three weeks to comment by the agency. The SEC’s interest in continuing to scrutinize these innovative financial products is shown by this step.

Regulatory Hurdles

Furthermore, coinciding with the crypto community’s waning optimism for the approval of spot Ethereum ETFs, a request for public input has been issued. Also, there has been little movement in the seven applications pending a decision from the SEC, including those of Fidelity, BlackRock, and other firms.

After the Ethereum Dencun upgrade, which attempted to lower transaction fees, went live on March 13th, the market was not pleased and Ether’s value dropped by almost 12%. Similar to how the debut of U.S. spot Bitcoin ETFs was met with increased demand from institutions, the approval of spot Ethereum ETFs is expected to have a considerable impact.

However, the neglect of the evaluation process and the SEC’s choice to postpone a judgment on BlackRock’s and Fidelity’s petitions go unnoticed. Regulatory hurdles related to Ethereum financial products are raised by this approach, which differs from the process for spot Bitcoin ETFs.

Moreover, Eric Balchunas, an ETF analyst at Bloomberg, revised his May prediction from 70% to 30% for the likelihood of approval of a spot Ethereum ETF.

Highlighted Crypto News Today:

ARK Invest CEO Cathie Wood Backs Bitcoin Amid Currency Devaluations