Key Points
- The US SEC has opened a public comment period for Ethereum ETF filing amendments.
- Analysts predict low odds for May approval, citing the risk of market manipulation.
On April 3, 2024, the U.S. Securities and Exchange Commission (SEC) initiated a public comment period on Ethereum (ETH) ETF filing amendments related to Bitwise, Fidelity, and Grayscale.
This 21-day public comment period has stirred excitement among some cryptocurrency enthusiasts, who view this as a highly positive development for ETH.
Analysts’ Take on the Situation
However, Bloomberg ETF analyst James Seyffart has downplayed the excitement. He explains that the public comment period is a standard procedure for all 19b-4 ETF filings, regardless of whether they are approved or denied, and does not specifically indicate a bullish scenario for Ethereum ETFs.
When asked about BlackRock’s chances of gaining approval for its Ethereum ETF spot, Seyffart expressed skepticism but did not rule out the possibility entirely.
Sam Enzer, a partner at Cahill Gordon and Reindel, also expressed doubts about a May approval. He cited the risk of market manipulation as a potential reason for the SEC to reject the applications.
Concerns and Market Impact
In addition to market manipulation, Enzer pointed out that ETH staking could be a significant concern for the SEC.
Meanwhile, amid the uncertainty surrounding the May approval, ETH has experienced a 9% drop on the weekly charts, falling from $3645 to $3200. This decline is partly attributed to Bitcoin’s (BTC) significant downturn.
If the current unfavorable macroeconomic conditions continue, there’s a possibility that ETH could further decline to the $3000 psychological level.
