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All eyes are on the U.S. Securities and Exchange Commission (SEC), which has opened a public comment period on three ether spot exchange-traded fund (ETF) proposals.
“The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons,” the presentation fixed.
According to notices made public on April 2, the US regulator has assigned a 21-day comment period for eth ETF proposals from Bitwise, Fidelity, and Grayscale. Specifically, Bitwise and Grayscale filing are seeking to list on the NYSE Arca, and Fidelity is considering a listing on the Cboe BZX Exchange.
Following the groundbreaking entry of bitcoin ETFs, industry analysts had high hopes for approval. However, optimism has since dried up as the SEC has maintained silence on the matter.
“Asking for public comment on a 19b-4 is standard procedure.” x.com/JSeyff/status/1775566929853382982?s=20″ target=”_blank”>wrote Bloomberg analyst James Seyffart. “Every ETF 19b-4 filing goes through the same process (either approved or denied). Not “bullish” in any way for #ethereum ETFs.”
eth analyst Eric Blachunas echoed similar sentiments last month. The Bloomberg analyst estimated the probability of sports eth ETFs being approved at a scant 25%.
“Lack of commitment appears to be intentional versus procrastination. There are no positive signs or information anywhere,” Balchunas said.
SEC Chairman Gary Gensler warned in January that the commission's approval of bitcoin ETFs should not “signal” the regulator's views on the legal status of other cryptocurrencies. Following this, the regulator launched an investigation into the ethereum Foundation in March in a bid to label the cryptocurrency as a security.
Amid this backdrop, MetaMask creator Consesnys has urged the SEC to recognize the advanced safeguards in ethereum's design. The firm added that the regulator's concerns about ethereum's susceptibility to fraud and manipulation are unfounded.
The SEC is expected to announce its decision by May 23. The VanECK Spot Ether ETF is expected to be the first to be approved or denied. Other filings lined up include those from ARK, 21 Stock, and Hashdex.