SEC to meet with issuers of Spot Ethereum ETFs in March.!

Reuters reports that a meeting between the six Ethereum (ETH) ETF applicants and the U.S. SEC is scheduled for next month to deliberate over proposals for the Ether-based investment vehicles. Although the newspaper names two people with knowledge of the situation as sources, the SEC's public log as of the time of publishing does not show any meetings with issuers. VanEck's filing was first in line for decisions on spot Ether-based goods, which were postponed until May at the most. While other issuers including BlackRock, Franklin Templeton Grayscale, and Invesco Galaxy await a response, the SEC has until May 23 to approve or reject VanEck's proposal.
Spot bids for Ethereum ETFs Shortly after issuers registered for spot Bitcoin ETFs, spot ETH ETF bids were submitted the previous year. The Bitcoin (BTC) products were certified by the SEC, and on January 11th, over twelve funds began trading. The securities watchdog had denied the application for more than ten years, citing concerns about market manipulation as the main justification. Nevertheless, the application was finally approved. The SEC also authorized cryptocurrency products based on futures during that period, and a three-judge panel, which included Judge Neomi Rao, deemed this move to be "arbitrary and capricious." The decision rendered in a Grayscale case against the SEC is recognized as a watershed in the protracted struggle to legalize widespread cryptocurrency investment and adoption in the United States.

Experts have pointed out that spot ETH ETFs might be examined differently, though. The SEC's perspective on Bitcoin and Ethereum is one notable distinction between the two products. SEC head Gary Gensler described Bitcoin as a non-security commodity after the spot BTC ETF was approved, while Ethereum's security classification is still up for debate. Moreover, the two blockchains are powered by different technology architectures. Ethereum switched to a proof-of-stake architecture in 2022, whereas Bitcoin continues to use proof-of-work. With the help of this approach, holders of Ethereum can stake their assets in exchange for yield.
The SEC has closely examined this procedure and has used it as a springboard to argue that current financial regulations are enough for overseeing cryptocurrency assets. Furthermore, the SEC has not communicated with issuers in the same way that the commission did before to approving spot BTC ETFs. While stating that all five commissioners will vote on the proposals, Gensler emphasized that past rulings do not suggest a broad support for cryptocurrency. Grayscale CEO Michael Sonneshein stated that it is too soon to determine whether the cryptocurrency investing company will need to challenge the SEC once more, while Commissioner Hester Peirce stated that the agency shouldn't need a legal case to force its hand. Supporters of the cryptocurrency space, such as Coinbase, have urged the SEC to approve Grayscale's application for a spot Ethereum ETF, which aims to turn a $7 billion trust into an exchange-traded fund. The cryptocurrency exchange also requested clearer regulations for cryptocurrencies from the SEC.

As the SEC considers approving Ether ETFs that mirror spot prices, ETH has increased by more than 42% over the past 30 days, according to CoinMarketCap. Although many experts attribute the spike to anticipation surrounding the Dencun upgrade, they feel spot ETH ETF excitement has aided to this rally.