- The SEC’s request for public comments on Spot Ethereum ETF applications has raised excitement, yet Bloomberg emphasises it is business as usual.
- Concerns about Ethereum being classified as a security have dampened enthusiasm for the filings.
- BlackRock’s CEO Larry Fink suggests the classification of Ethereum as a security wouldn’t hinder the progress of ETFs, indicating adaptability in strategy.
The United States Securities and Exchange Commission (SEC) has been very quiet about the recent applications for Spot Ethereum ETFs—apart from the frequent delays. Now, the SEC has proponents excited as the watchdog has asked for public comments on the filings. However, as Bloomberg points out this is all standard procedure and every single 19b-4 filing follows the same procedure.
ETF analyst James Seyffart said this is nothing to be too excited about—he and his colleagues at Bloomberg have been trying to curb enthusiasm for the applications for a while now.
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Because they had pointed to the SEC being very quiet during this round of applications—which they hadn’t been during Spot Bitcoin ETF applications—the request for comment was seen by some as a bullish signal.
Ethereum A Security? It Doesn’t Matter Says BlackRock’s Fink
Recent hype around Spot Ethereum ETFs received significant setback when discussions surfaced around Ethereum being a security. The situation became even more complicated with Prometheum, Inc., the only US-registered crypto securities platform, aiming to commence its operations by taking custody of ETH for its clients.
This situation could force the SEC’s hand, potentially leading it to declare Ethereum a security. In late March Republican chairmen of the House Financial Services and Agriculture Committee wrote to SEC chair Gary Gensler to explain the situation and criticised his lack of clarity around ETH’s status.
It’s not all bad news though, recall that BlackRock’s Larry Fink recently said it wouldn’t matter if Ether is a security and that the ETFs could still go ahead even if it was designated as such.
Related: BlackRock CEO Larry Fink Says Ethereum ETFs Feasible Regardless of Security Status, Remains Bullish on BTC
Whatever the outcome, the developments over the next few weeks and months will be interesting to watch—Ethereum has meanwhile taken a bit of a breather, and is down 5% from where it was last week.
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