According to Bloomberg’s James Seyffart, asking for public comments on ETFs is standard procedure.\n<\/p>\n
The Securities and Exchange Commission (SEC) set off a short-lived celebration on \u201cCrypto Twitter\u201d after requesting public comments on applications to list spot ETH exchange traded funds (ETF). But a well-known analyst says not so fast.<\/p>\n
On April 2, the SEC called for comments regarding three funds vying for a spot Ethereum ETF: Grayscale, Bitwise, and Fidelity. The latter recently added staking<\/a> to their application.<\/p>\n Comments are due in 21 days.<\/p>\n Ethereum<\/a>‘s ETH remained virtually unfazed by the news, and is up 1.2% to $3,315. Crypto markets took a sharp downturn<\/a> yesterday amid a strengthening dollar, and ETH has been no exception, dropping 5% in the past seven days.<\/p>\n <\/p>\n While some called the news \u201cGiga Bullish<\/a>,\u201d James Seyffart, ETF analyst for Bloomberg, quickly reeled expectations in.<\/p>\n \u201cAsking for public comments on a 19b-4 is standard procedure,\u201d Seyffart wrote<\/a> on X on April 3. \u201cEvery single 19b-4 ETF filing goes through the same process (whether approved or denied). It’s not \u2018bullish\u2019 in any capacity for Ethereum ETFs,\u201d he added.<\/p>\n In another post on April 2, he pointed out<\/a> that \u201cSilence from the SEC isn\u2019t a good thing here.\u201d<\/p>\n Seyffart and his colleague Eric Balchunas have been somewhat bearish on the U.S. agency approving a spot Ethereum ETF.<\/p>\n In a tweet posted<\/a> by Balchunas on March 28, he wrote that the team places odds at a \u201cpessimistic\u201d 25%, adding that he\u2019d \u201cgo lower\u201d if he could. He attributed the number to the seven week deadline along with the SEC\u2019s radio silence\u2013calling the latter \u201cbleak.\u201d<\/p>\n In addition to Grayscale, Fidelity, and Bitwise, a number of firms have applied for a spot Ethereum ETF. These include BlackRock\u2013which has been on an accumulation spree for BTC through its spot Bitcoin ETF\u2013Ark Invest<\/a>, and Franklin Templeton.<\/a><\/p>\n <\/p>\n“Giga Bullish”<\/h2>\n
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