In a significant development, the U.S. Securities and Exchange Commission (SEC) has opened the floor for public commentary on spot Ethereum ETF applications, including submissions from major players like Grayscale, Fidelity, and Bitwise.
Read on for more about this update below.
Looking at Precedents
This pivotal move parallels a similar call for public scrutiny on five spot Bitcoin ETF trusts, a precursor to their eventual approval. However, the prevailing optimism surrounding the potential approval of spot Ethereum ETFs in May ’24 has dwindled to a mere 25% positivity.
The SEC’s decision to solicit public feedback on Ethereum ETF applications follows its recent deferral of judgment on the VanEck spot Ether ETF application, pushing the decision timeline to May 2024. Citing the necessity for extended deliberation, the Commission has prolonged the period for approval or denial of the proposed rule change.
Only a Limited Window!
The SEC has announced a concise three-week window for the public to weigh in on Ethereum ETF applications from Grayscale, Fidelity, and Bitwise.
“The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons.”
This development has stoked speculation regarding the fate of Ethereum ETFs, with Bloomberg ETF analyst James Seyffart expressing skepticism about their prospects for approval.
Read More: ConsenSys Makes Strong Case for Ethereum ETF, Citing Security Edge
Market Fluctuations
Ethereum’s recent market performance has been marked by two consecutive days of decline since the onset of April, before displaying signs of recovery today. The cryptocurrency dipped to a low of $3,362 on Tuesday, reflecting a decline of over 6.7% from its previous support level.
The downward trend in Ethereum’s value was primarily triggered by Bitcoin’s nearly 6% depreciation at the beginning of April, following a seven-month bullish streak. Ethereum saw total liquidations amounting to $91.91 million, with long positions comprising $75.1 million of the total.
There’s Still Hope for Ethereum!
Despite these fluctuations, historical data indicates Ethereum’s typically robust performance in the second quarter, boasting an average gain of 66.59%.
While the SEC’s approach, including delays, rejections, appeals, and now public consultations, mirrors the path taken before the approval of Bitcoin ETFs, the final verdict remains uncertain.
Also Read: Ethereum Transactions Fees Hit $1.2 Billion in Q1 2024: ETH Price Rally Incoming?
