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Top Three Proposals On Ethereum ETF; Approval Coming Soon? – Crypto News

Published

1 year ago

April 4, 2024

Dripp

Bitcoin ETF’s success after the approval from the SEC has led to the expectation of Ethereum ETF approval as well. Though the SEC also took their time before approving the Bitcoin ETF, now that us touching a higher value day by day.

There were a few companies who had applied their proposal for Ethereum ETF even before Bitcoin one was approved. It is because the people had confidence in Ethereum, which is true to its image of being the second largest and most popular cryptocurrency.

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In this blog, let’s discuss the top three Ethereum ETF proposals and whether they will get approved or not.

Top Three Ethereum ETF Proposals

Ethereum ETF has become a prominent point of discussion among the community, and everyone is patiently waiting for a positive response from the SEC. Because of this high popularity and demand, a few companies are trending for their Ethereum ETF proposal. So, the top three proposals are from Grayscale Ethereum Trust, Fidelity Ethereum Fund, and Bitwise Ethereum Trust.

Grayscale Ethereum Trust

Grayscale is a well-known investment firm that allows investment options in cryptocurrencies. The company keeps its tokens offline while updating the users in the balance and transaction updates. The tokens being offline keeps them safe from any hacks.

Grayscale was among the first to file for Spot Ethereum ETF. It came forward for Spot ETF in October last year, and the company filed the 19b-4 firm, along with NYSE. The filing was to convert its Grayscale Ethereum Trust To Spot Ether ETF.

The company did the same in the case of Bitcoin and successfully converted the Grayscale Bitcoin Trust to Spot Bitcoin ETF.

Fidelity Ethereum Fund

Fidelity Ethereum Fund is a part of Fidelity Digital Assets, which is a subsidiary of Fidelity Investments. It is among the first companies to appeal for the approval of crypto ETFs and other trust funds related to cryptocurrencies. Fidelity filed for the Spot Ether ETF in March with an S-1 application.

Bitwise Ethereum Trust

Bitwise is one the biggest crypto index fund managers and offers various crypto-based ETFs. It filed for the Ethereum ETF recently but has asked the SEC to delay the approval till December to ensure more success.

The CEO of Bitwise, Matt Hougan says,

Spot Ethereum ETFs will gather more assets if they launch in December versus if they launch in May. TradFi needs more time to digest

These are not the only Spot ETF proposals, as companies like Franklin, BlackRock, and a few others have also appeared in front of the SEC with their proposals.

SEC Has Asked For Community Opinions On Top Ethereum ETF

On the 2nd of April, the SEC (Securities and Exchange Commission), requested the general public to share their views on the top three proposed Spot Ether ETF, which includes Grayscale, Fidelity, and Bitwise. They have provided 21 days for the community to submit their comments for all these three proposals.

These opinions will play a significant role in the decision of the SEC over the Ether ETF approval. The challenge is that the market has left optimism for the Ethereum ETF due to continuous delays in the SEC decision. So, it is hard to predict the outcomes of these comments and opinions of the community.

Also Read: Trader Turned $100 Crypto Investment Into $8.3 Million In A Week; Here’s How He Did It

Earlier, the Bloomberg analyst shared his opinions over the Ethereum ETF and conveyed that the chances of Spot Ethereum ETF approval have reduced to 35%.

Will SEC Approve Ethereum ETF?

As the SEC has asked the general public about Ethereum ETF, there seems to be hope for a positive response from the SEC. But the doubts are still haunting the Ethereum supporters, as the SEC’s decision is on hold till the end of May.

The SEC Chair has not talked to or informed the community about Ethereum’s status between commodity and security. However, CFTC has announced Ethereum with a few other cryptocurrencies commodities.

This announcement has come out as a hope for the Ethereum users. If the SEC can agree to that, there is a high chance of Ethereum ETF approval by May.

Conclusion

With the comments option, the crypto community does have a better chance of getting the Spot Ether ETF approval. The final decision is in the hands of the SEC, which will be out by the 23rd of May. This time, the chances of approval seem decent compared to the situation a few days ago. Earlier, the SEC was more stricter towards the Ethereum network.