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Reuters reports that the U.S. SEC is scheduled to hold discussions with applicants seeking approval for spot Ethereum ETFs next month, marking a significant development in the ongoing efforts to introduce Ether-based investment products.
While the SEC's public log does not reflect scheduled meetings with issuers, sources familiar with the matter indicate otherwise.
Delays and Awaited Decisions
Decisions on spot Ether-based ETFs have been postponed until at least May, with VanEck's filing taking precedence. VanEck's bid must either be accepted or rejected by the SEC by May 23, while other prominent issuers such as BlackRock, Franklin Templeton Grayscale, and Invesco Galaxy await responses to their respective applications.
Spot Ethereum ETF Applications: A Timeline
Spot ETH ETF applications were lodged last year shortly after issuers sought approval for spot Bitcoin ETFs. Following the SEC's approval of Bitcoin (BTC) products, nearly a dozen funds commenced trading on January 11, marking a significant milestone in the regulatory sector.
After years of rejection by the securities watchdog, this approval marked a notable shift, with market manipulation concerns cited as primary reasons for previous denials.
According to Crypto News, the approval of futures-based crypto products alongside spot BTC ETFs signaled a turning point in efforts to legitimize mass crypto adoption and investment in the U.S.
Challenges and Complexities
Experts caution that spot ETH ETFs may undergo a different review process than their Bitcoin counterparts. One key distinction lies in how the SEC categorizes Bitcoin as a non-security commodity while the security status of Ethereum remains ambiguous.
As per Crypto Potato, Ethereum's upcoming technological advancements will help drive the crypto's price higher and potentially reach new all-time highs.
Industry Perspectives and Market Sentiment
Crypto industry stakeholders, including Coinbase, have advocated for the SEC to approve Grayscale's spot ETH ETF application, emphasizing the need for transparent crypto regulations.
Amid anticipation surrounding the potential introduction of spot ETH ETFs, Ether has experienced significant price gains, with experts attributing part of this rally to heightened expectations surrounding the Dencun upgrade.
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