SEC Seeks Public Feedback on Ether ETF Proposals; Experts Skeptical Amid Ongoing Investigations
Summary:
The U.S. Securities and Exchange Commission (SEC) seeks public feedback on proposed revisions to allow the listing and trading of three Ether (ETH) exchange-traded funds (ETFs). Proposals are from asset managers Bitwise, Fidelity, and Grayscale, with the final decision expected in May. The SEC's approval of similar Bitcoin ETFs earlier has led to speculations about the potential of Ether ETFs, but experts note a drop in their optimism. An ongoing SEC investigation into the Ethereum Foundation could challenge these ETFs approval by labeling Ether as a security.
The U.S. Securities and Exchange Commission (SEC) has invited the public to provide insights on the proposed revisions that would enable three Ether (ETH) exchange-traded funds (ETFs) to be listed and traded on marketplaces. The SEC, in discrete notifications released on April 2, indicated the public had a 21-day window post Federal Register publication to express their thoughts on ETH ETF proposals from Bitwise, Fidelity, and Grayscale. Applications for ETFs filed by Bitwise and Grayscale for listing and trade on NYSE Arca and by Fidelity on the Cboe BZX Exchange come before the conclusive verdict on the investment tool, anticipated in May.
James Seyffart, an ETF analyst at Bloomberg, indicated in an April 2 post that nothing in the submitted-files suggested any change of situation. He underlined the SEC's silence wasn't a positive sign in this scenario. He further clarified on April 3 that fetching public responses is a standard practice for all 19b-4 ETF applications, and it doesn't forecast a 'bullish' stance for Ethereum ETFs.
In the wake of intense investor and media scrutiny, the SEC consented to multiple spot Bitcoin (BTC) ETFs for the initial time in January, with its Chairperson Gary Gensler casting the decisive vote. Nevertheless, several experts have speculated a steady decline in the likelihood of the commission similarly approving Ether ETFs in 2024.
Notably, an application from VanEck for a spot Ether ETF with a definitive deadline of May 23, is likely the first such case the SEC will address. A range of other fund managers, including Hashdex and ARK 21Shares, have comparable applications lined up.
A probe by the SEC into the Ethereum Foundation could pose a challenge to the decision on approving or rejecting a spot ETH ETF, by categorizing the digital currency as a security. Blockfirm Consensys, in a letter to the SEC in March, denied the SEC's apprehensions about potential fraud and market manipulation for a spot ETH ETF as unfounded.
Published At
4/3/2024 11:59:21 PM
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