SEC opens comment period for Ethereum spot ETF proposals
The U.S. Securities and Exchange Commission (SEC) has initiated a three-week comment period for three Ethereum (ETH) spot exchange traded fund (ETF) proposals submitted by Grayscale Investments, Fidelity, and Bitwise.
The agency posted notices on Tuesday, inviting interested parties to provide their input on the proposed rule changes.
Despite the recent approval of Bitcoin (BTC) spot ETFs in January, industry analysts are becoming less optimistic about the SEC’s willingness to approve similar products tracking Ethereum. The agency’s decision to approve Bitcoin ETFs came after facing pressure following a significant court loss against Grayscale. However, SEC officials have argued that the Bitcoin approval does not necessarily apply to other cryptocurrencies.
SEC Chair Gary Gensler emphasized in January that the Bitcoin approval should not be interpreted as a reflection of the commission’s stance on the status of other crypto assets under federal securities laws. This statement has raised concerns among investors and industry participants.
The introduction of Bitcoin ETFs has significantly boosted investments in the coin, and a similar outcome is anticipated by some for ETH if the SEC were to approve Ethereum spot ETFs. However, reports suggest that the SEC has been investigating whether ETH should be classified as a security, which would place it under a different legal framework compared to Bitcoin.
SEC is not an ETF fan
The outcome of the three-week comment period and the SEC’s ongoing probe into ETH’s classification will likely have a substantial impact on the future of Ethereum spot ETFs and the wider cryptocurrency market. The announcement follows the SEC discussing the Ethereum spot ETF proposed by asset manager Grayscale Investments with Coinbase back in March.
According to documents about the meeting, the crypto exchange described the proposed product to the regulator that Grayscale filed for back in October. If accepted, the proposal would convert the Grayscale Ethereum Trust close-ended fund into a spot ETF.
Featured image: Ideogram
The post SEC opens comment period for Ethereum spot ETF proposals appeared first on ReadWrite.