SEC Opens Public Feedback Period for Three Ether Spot ETF Proposals as Analysts Temper Expectations

The United States Securities and Exchange Commission (SEC) has initiated a period for public feedback on three proposed ether spot exchange-traded fund (ETF) offerings, drawing attention from investors and analysts alike.

In a filing released on April 2, the SEC announced a 21-day comment window for ETF proposals submitted by Bitwise, Fidelity, and Grayscale. The filings detail plans for listing on NYSE Arca for Bitwise and Grayscale, and on the Cboe BZX Exchange for Fidelity.

Despite initial enthusiasm following the approval of Bitcoin ETFs, sentiments have since shifted as the SEC remains tight-lipped on the matter. Bloomberg analyst James Seyffart highlighted that the solicitation of public comments on a 19b-4 filing is a routine procedure, indicating that it does not necessarily imply a bullish outlook for Ethereum ETFs.

Eric Balchunas, another analyst at Bloomberg, echoed similar skepticism last month, estimating a mere 25% chance of approval for spot ETH ETFs. He noted a conspicuous lack of positive indicators or insider information regarding the SEC's stance.

SEC Chair Gary Gensler's cautionary remarks in January emphasized that the approval of Bitcoin ETFs did not reflect the regulator's stance on other cryptocurrencies' legal status. This stance was reiterated as the SEC launched an investigation into the Ethereum Foundation in March, with the intention of potentially classifying Ethereum as a security.

ConsenSys, the creator of MetaMask, urged the SEC to acknowledge Ethereum's robust security features, refuting concerns about susceptibility to fraud or manipulation. The firm argued that Ethereum's design incorporates advanced safeguards against such risks.

The SEC is anticipated to make its decision by May 23, with the VanECK spot ether ETF expected to be the first to receive approval or denial. Other filings awaiting review include those from ARK, 21Shares, and Hashdex.