The Securities and Exchange Commission (SEC) of the United States is seeking feedback from the general public regarding proposed rule changes that would allow the listing and trading of shares from three spot Ether (ETH) exchange-traded funds (ETFs) on various exchanges.
In official notices filed on April 2, the SEC announced that the public has a 21-day window to respond after the proposals from asset managers Bitwise, Fidelity, and Grayscale are published in the Federal Register. Bitwise and Grayscale have submitted ETF filings to list and trade on NYSE Arca, while Fidelity has filed with the Cboe BZX Exchange. The SEC is set to make a final decision on these investment vehicles in May.
ETF analyst James Seyffart expressed skepticism about the proposed rule changes, stating that he sees no indication of any significant developments. He also noted that the SEC’s silence on the matter is concerning.
In January, the SEC approved several spot Bitcoin (BTC) ETFs for the first time, but many analysts believe that the chances of the commission making a similar decision on Ether ETFs have diminished over time.
The first spot Ether ETF application that the SEC is expected to address is from VanEck, with a final deadline set for May 23. Other asset managers, including Hashdex and ARK 21Shares, also have similar filings in progress.
There is a reported investigation by the SEC into the Ethereum Foundation, which could potentially impact the commission’s decision on approving or denying a spot ETH ETF. The classification of Ether as a security is a key factor in this investigation. Consensys, a blockchain firm, submitted a comment letter to the SEC in March, arguing that the concerns about potential fraud and market manipulation for a spot ETH ETF are unfounded.
In other news related to cryptocurrency, a Senate opposition to Ether ETFs has emerged, there are doubts about Craig Wright’s claim of being Satoshi Nakamoto, and Dencun, a cryptocurrency, has gone live. This information was covered in Hodler’s Digest, a magazine released from March 10 to 16.