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The U.S. Securities and Exchange Commission Seeks Public Input on Proposed Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) has recently made a significant move by inviting public feedback on three proposed Ethereum exchange-traded funds (ETFs). This development comes after a series of delays by the regulator in deciding on Ethereum spot ETFs, indicating progress towards the potential approval of these investment products.
On Tuesday, the SEC announced a three-week comment period for Grayscale Investments, Fidelity, and Bitwise, who have submitted proposals for Ethereum ETFs. This step is a standard part of the process for fund managers seeking SEC approval for an ETF, similar to what occurred with the approval of spot Bitcoin ETF applications. During this period, U.S. citizens and organizations can provide their feedback on the proposed ETFs.
All three fund managers have presented proposals for spot ETH ETFs to the SEC. The concept involves holding Ethereum and issuing shares that mirror the asset’s price movements. This approach mirrors the approval process for 11 spot Bitcoin ETFs granted by the SEC in January, following years of rejections. These Bitcoin ETFs are now actively traded on stock exchanges, offering traditional investors exposure to the cryptocurrency’s price.
Encouraged by the success of Bitcoin ETFs, many fund managers are now seeking approval to introduce similar products for Ethereum, the second largest digital currency by market capitalization. A report by British multinational bank Standard Chartered in January predicted SEC approval for ETH ETFs by a May deadline. However, industry analysts have expressed doubts about the likelihood of swift approval, suggesting that a delay in Ethereum ETFs could have benefits in distinguishing between Bitcoin and Ethereum products.
As of the latest data from CoinGecko, the price of ETH currently hovers around $3,314, significantly below its all-time high of $4,878 reached in 2021. This disparity highlights the potential for growth and market dynamics within the Ethereum ecosystem.
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