Analysts bearish as SEC solicits feedback on three Ethereum ETF filings
All attention is focused on the United States Securities and Exchange Commission (SEC), as it has initiated a public feedback period for three ether spot exchange-traded fund (ETF) proposals.
The filing states, “The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.”
According to recently released notices on April 2, the U.S. regulator has allocated a 21-day comment period for ETH ETF proposals from Bitwise, Fidelity, and Grayscale. Specifically, Bitwise and Grayscale are seeking listing on NYSE Arca, while Fidelity is considering trading on the Cboe BZX Exchange.
Industry analysts initially had high hopes for approval following the groundbreaking introduction of Bitcoin ETFs. However, optimism has diminished as the SEC has remained silent on the matter.
Bloomberg analyst James Seyffart wrote, “Asking for public comments on a 19b-4 is standard procedure. Every single 19b-4 ETF filing goes through the same process (whether approved or denied). It’s not ‘bullish’ in any capacity for #Ethereum ETFs.”
Last month, ETH analyst Eric Blachunas expressed similar sentiments. The Bloomberg analyst estimated the likelihood of spot ETH ETFs being approved at only 25%.
“The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look,” Balchunas said.
In January, SEC chair Gary Gensler warned that the approval of Bitcoin ETFs should not indicate the regulator’s stance on the legal status of other cryptocurrencies. Subsequently, the regulator launched an investigation into the Ethereum Foundation in March to determine if the cryptocurrency should be classified as a security.
Against this backdrop, ConsenSys, the creator of MetaMask, has urged the SEC to acknowledge the advanced safeguards in Ethereum’s design. The firm also stated that the regulator’s concerns about fraud and manipulation in Ethereum are unfounded.
The SEC is expected to announce its decision by May 23, with the VanECK spot ether ETF anticipated to be the first to receive approval or denial. Other filings in the queue include those from ARK, 21 shares, and Hashdex.
Read more:
ConsenSys urges SEC to recognize the safeguards of spot Ethereum ETFs
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