Tensions are rising across the digital currency ecosystem ahead of this week's Spot Ethereum ETF decision. In the latest update, the U.S. Securities and Exchange Commission (SEC) has released a document seeking public comment on some potential Spot Ethereum ETF applications.
Spot Ethereum ETF: SEC’s first official comments
Market regulators are carefully communicating with prospective issuers of Spot Ethereum ETFs. But the chances of approval increased earlier this week, with market regulators filing the first major application in hopes of approval. In separate applications filed by BlackRock, Grayscale Investments, Ark21Shares, Fidelity Investments and Bitwise, regulators required comments to be sent electronically or in paper submissions.
In its filing, the market regulator highlighted key aspects of the Spot ETH ETF application. This includes the safety of investor assets, compliance with securities regulations, redemption measures, etc. According to his analysis, the regulatory stance regarding spot Ethereum ETF products has become predominantly dovish.
“The Exchange believes that this proposal is specifically aimed at protecting investors and the public interest. Investor protection issues for U.S. investors include the roll costs of Ether futures ETFs and the “Through the fund's premium/discount volatility and management fees, it has increased significantly in recent years,” the filing states.
The request for comments suggests regulators may be more flexible in approving products in line with general market expectations.
The fate of VanEck and Ark 21Shares applications
There are a number of developments related to the approval of a spot Ethereum ETF that analysts are uncovering. Both VanEck and Ark 21Shares have filed petitions to get a decision on their filings this week. Market analysts speculate that the 19b-4 could be approved while the parties take their time to avoid the S-1.
There has been further speculation in the market regarding a Spot ETH ETF product. In the case of the Spot Bitcoin ETF, there were weeks of back and forth between regulators and the issuer, which streamlined the process and ultimately led to the approval and launch of the product in the same week.
This time around, analysts said the time between initial 19b-4 approval and an actual launch could take anywhere from a few weeks to a few months.
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