The U.S. Securities and Exchange Commission has asked for public comment on spot Ethereum ETF applications, including those from Grayscale, Fidelity, and Bitwise.
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This move is critical, coinciding with a similar request for public review on 5 spot Bitcoin ETF trusts before Bitcoin ETFs were approved. This crucial move comes as optimistic sentiments for spot Ethereum ETF approval in May ’24 have reduced to 25% positivity.
Ethereum ETF Update
The SEC’s request for public comment on Ethereum ETF applications comes after it recently postponed its decision on the VanEck spot Ether ETF application to May 2024. The Commission extended the approval or denial period, citing the need for more time to consider the proposed rule change.
The SEC’s request for public comment on Ethereum ETF applications on Grayscale, Fidelity, and Bitwise’s Ethereum ETF Trusts will only be open for 3 weeks.
The SEC’s filing states, “The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons.”
This decision adds to speculation about the fate of Ethereum ETFs, with Bloomberg ETF analyst James Seyffart expressing skepticism about their approval.
Previously in February, the SEC requested public feedback on spot Bitcoin ETFs before ultimately approving them in March. This similar approach of the SEC in deciding on a crypto exchange-traded fund might lead the community members to become more optimistic about approving the spot Ethereum ETFs.
Ethereum Price
Looking at the price action, Ethereum witnessed two consecutive days of decline since the start of April before finally building up some strength today. Ethereum fell to a low of $3,362 on Tuesday, which shows a decrease of over 6.7% from its previous support level.
The drop in Ethereum was mainly triggered by Bitcoin shedding nearly 6% of its value at the start of April after ending 7 months in green. The total liquidations in Ethereum amounted to $91.91 million, with long positions accounting for $75.1 million.
Nonetheless, historical data suggests that Ethereum has performed well in the second quarter, with an average gain of 66.59%.
Although the SEC’s move to delay decisions, reject and disapprove, appeal, and then ask for public comments may align with the historical pattern of what happened before Bitcoin ETFs were finally approved, the ultimate decision remains uncertain, with the outcome likely to shape the future landscape of Ethereum ETFs.
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