The agency has given the public a three-week window to provide comments on the matter. This approach has brought up regulatory challenges concerning Ethereum financial products. The U.S Securities and Exchange Commission (SEC) has opened up several potential applications for spot Ethereum ETFs for public comment. The focus is primarily on ETFs such as the Grayscale Ethereum Trust, Bitwise Ethereum Fund, and Fidelity Ethereum Fund.
Additionally, the SEC has acknowledged the Bitwise submission and has expressed its intention to gather feedback on the proposed rule change. The agency has given the public three weeks to comment on this matter, showcasing its interest in closely examining these innovative financial products.
Furthermore, as the crypto community’s optimism for the approval of spot Ethereum ETFs wanes, a request for public input has been issued. Moreover, there has been little progress on the seven applications awaiting a decision from the SEC, including those from Fidelity and BlackRock.
Following the launch of the Ethereum Dencun upgrade on March 13th, which aimed to reduce transaction fees, the market responded negatively, leading to a nearly 12% drop in Ether’s value. Similar to the increased demand from institutions upon the introduction of U.S. spot Bitcoin ETFs, the approval of spot Ethereum ETFs is also expected to have a significant impact.
However, the lack of progress in the evaluation process and the SEC’s decision to delay judgment on BlackRock’s and Fidelity’s requests have gone unnoticed. This approach raises regulatory hurdles concerning Ethereum financial products, which differs from the process for spot Bitcoin ETFs.
Furthermore, Bloomberg ETF analyst Eric Balchunas has revised his prediction for the likelihood of a spot Ethereum ETF approval in May from 70% to 30%.
In other crypto news today, ARK Invest CEO Cathie Wood has expressed her support for Bitcoin amidst currency devaluations.
