In a significant development, the U.S. Securities and Exchange Commission (SEC) has opened a forum for public comment on spot Ethereum ETF applications, including applications from leading companies such as Grayscale, Fidelity, and Bitwise.
Read below to learn more about this update.
look at the precedent
This pivotal move parallels calls for similar public scrutiny of the five Spot Bitcoin ETF trusts, a precursor to their eventual approval. However, general optimism surrounding the likelihood of spot Ethereum ETF approval in May 2024 has declined to just 25%.
The SEC's decision to solicit public feedback on the Ethereum ETF application follows the recent postponement of decision on the VanEck Spot Ether ETF application, which pushed back the timeline for a decision to May 2024. Due to the need for extended consideration, the committee extended the period for approval or rejection. Contents of the proposed rule change.
Limited windows only!
The SEC announced a brief three-week window for the public to consider Grayscale, Fidelity, and Bitwise Ethereum ETF applications.
“The Commission is issuing this notice to seek comment from interested parties on the proposed rule changes as amended by Amendment No. 1.”
This development has sparked speculation about the fate of the Ethereum ETF, with Bloomberg ETF analyst James Seifert expressing skepticism about the prospects for Ethereum ETF approval.
Read more: ConsenSys makes strong case for Ethereum ETF, citing security edge
market fluctuations
Ethereum's recent market performance was characterized by two consecutive days of decline since the beginning of April, but it is showing signs of recovery today. The cryptocurrency fell to a low of $3,362 on Tuesday, reflecting a drop of more than 6.7% from the previous support level.
Ethereum's downward trend in value was primarily triggered by Bitcoin's nearly 6% decline in early April after a seven-month bull market. Total Ethereum liquidation amounted to $91.91 million, of which long positions accounted for $75.1 million.
There is still hope for Ethereum!
Despite these fluctuations, historical data shows that Ethereum's second quarter performance has been typically strong, with an average gain of 66.59%.
The SEC's approach, including delays, denials, appeals, and now public consultations, mirrors the path taken to approve Bitcoin ETFs, but the final verdict remains uncertain.
Also read: Ethereum transaction fees reach $1.2 billion in Q1 2024: Will ETH price start to rise?
