The US Securities and Exchange Commission (SEC) has opened a public comment period for Ethereum (ETH) ETF applications from Bitwise, Fidelity, and Grayscale. The 21-day comment period has sparked excitement among cryptocurrency users, with some dubbing it a “giga bull” scenario for ETH. However, Bloomberg ETF Analyst James Seyffart has downplayed the excitement, calling the public comment window a standard procedure for ETF filings.
Seyffart noted that the chances of approval for ETH ETFs in May are low but not zero. He also hinted at the possibility of the SEC rejecting approval due to concerns about market manipulation and the staking on ETH. Meanwhile, Sam Enzer, a partner at Cahill Gordon and Reindel, echoed similar sentiments about the SEC potentially denying approval in May.
In light of the uncertainty surrounding the May approval, ETH has experienced a 9% drop on the weekly charts, falling from $3,645 to $3,200. This decline is partly attributed to the overall market conditions, including Bitcoin’s significant drop. If the bearish trend continues, ETH could potentially dip further to the $3,000 level.
The upcoming decision on ETH ETFs comes at a critical time for the cryptocurrency market, with investors closely watching how regulators will approach these applications. Stay tuned for more updates on this evolving story.