SEC Reviews Ethereum ETF Applications from Major Firms
SEC opens comment period on Ethereum ETFs by Grayscale, Fidelity, and Bitwise
The SEC is accepting comments on Ethereum ETF proposals from Grayscale, Fidelity, and Bitwise, aiming for listings on Cboe BZX and NYSE Arca exchanges.
A 21-day period for public feedback is now open, continuing the practice established with Bitcoin ETFs, to gather opinions from the public.
Key factors for approval include the relationship between Ethereum's futures and spot markets, crucial for the SEC's decision.
The agency previously approved Ethereum futures ETFs, setting a precedent for spot market-based ETFs.
Grayscale and NYSE Arca, using a Coinbase analysis, argue that the spot and futures markets for Ethereum are closely related, which they say minimizes fraud risk.
They contest the SEC's reasoning for potential rejections based on regulatory concerns.
Additional considerations for the SEC include the management of ETFs, the process for creating and redeeming shares, and the fee structure.
The call for comments is a routine step and does not indicate the likelihood of approval.
The demand for Ethereum ETFs follows the SEC's approval of Bitcoin ETFs, showing the increased interest in cryptocurrency financial products.
Grayscale is notably pushing to convert its Ethereum trust into an ETF, with Coinbase's support.
Despite some uncertainty about the approval timeline for Ethereum ETFs, optimism remains high among some analysts, like Standard Chartered, who expect approval by May.
This enthusiasm underscores the growing desire to incorporate cryptocurrencies into conventional financial offerings.
