The Securities and Exchange Commission (SEC) of the United States is seeking input from the general public regarding proposed rule changes that would permit the listing and trading of three exchange-traded funds (ETFs) focused on spot Ether (ETH) on various exchanges.
In notices submitted separately on April 2, the SEC announced that the public would have 21 days to provide feedback after the publication of the proposals by asset managers Bitwise, Fidelity, and Grayscale in the Federal Register. The ETF filings from Bitwise and Grayscale seek to list and trade on the NYSE Arca, while Fidelity’s filing is for the Cboe BZX Exchange. These filings were submitted ahead of the commission’s anticipated decision on the investment vehicle, which is expected in May.
“The filings do not indicate any significant changes,” stated Bloomberg ETF analyst James Seyffart in a post on April 2. “The SEC’s silence is concerning.”
On April 3, Seyffart added:
The SEC previously approved several spot Bitcoin (BTC) ETFs, marking the first time such approvals were granted, following scrutiny from investors and media outlets. Chair Gary Gensler cast the deciding vote. However, many analysts speculate that the likelihood of the commission making a similar decision regarding Ether ETFs has diminished over time.
An application for a spot Ether ETF from VanEck, with a final deadline scheduled for May 23, is expected to be the first filing addressed by the SEC. Other asset managers, including Hashdex and ARK 21Shares, also have similar filings in progress.
The SEC’s decision to approve or reject a spot ETH ETF could be impacted by an ongoing investigation into the Ethereum Foundation. The classification of the digital asset as a security could pose challenges for the commission. In March, Consensys, a blockchain firm, submitted a comment letter to the SEC, asserting that the regulator’s concerns regarding potential fraud and market manipulation related to a spot ETH ETF were unfounded.
Magazine:
Senate opposition to Ether ETFs, Wright’s denial of being Satoshi, and Dencun’s live launch: Hodler’s Digest, March 10-16