Multiple issuers are competing for a spot Ethereum ETF after the successful launch of spot BTC products, but SEC delays and commissioner comments indicate a challenging path ahead.

As reported by Reuters, the U.S. SEC and spot Ethereum (ETH) ETF applicants are set to meet next month to discuss bids for Ether-based investment vehicles. The SEC’s public log currently does not show any scheduled meetings with issuers, but inside sources confirm the upcoming discussions.

Spot ETH ETF Decisions Delayed

Decisions on spot Ether-based products have been postponed until at least May, with VanEck’s filing taking precedence. The SEC is required to make a decision on VanEck’s application by May 23, while BlackRock, Franklin Templeton Grayscale, and Invesco Galaxy are also awaiting responses.

Spot Ethereum ETF Bids Timeline

Spot ETH ETF bids were submitted last year following the introduction of spot Bitcoin ETFs. The SEC approved the Bitcoin products, leading to the launch of nearly a dozen funds on Jan. 11.

Despite a history of rejections, the SEC’s approval of Bitcoin ETFs marked a significant milestone in legitimizing crypto adoption and investment. The decision was seen as a breakthrough, especially after a three-judge panel criticized the SEC’s previous denials as “arbitrary and capricious” during a Grayscale lawsuit.

Spot ETH ETF Review Differences

Experts suggest that spot ETH ETFs may face a different review process compared to Bitcoin. One key distinction is the SEC’s classification of Bitcoin as a non-security commodity, while Ethereum’s security status remains uncertain.

Moreover, Bitcoin and Ethereum operate on different technological frameworks, with Ethereum transitioning to a proof-of-stake model. This shift has raised concerns among regulators, who view staking as a potential regulatory issue.

Commissioner Hester Peirce has emphasized the need for clear regulatory guidelines, while industry stakeholders like Coinbase have called for transparent rules from the SEC.

Spot ETH ETF Approval Anticipation

As the industry awaits a decision on Ether ETFs tracking spot prices, ETH has seen a 42% increase in the last 30 days. Experts attribute this surge to excitement surrounding the upcoming Dencun upgrade.

Overall, the road to a spot Ethereum ETF approval is fraught with challenges, but industry players remain optimistic about the future of crypto investment in the U.S.

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