A variety of potential spot Ethereum ETF applications have been opened for public comment by the U.S Securities and Exchange Commission (SEC). The focus is on exchange-traded funds like Grayscale Ethereum Trust, Bitwise Ethereum Fund, and Fidelity Ethereum Fund.

Regarding the Bitwise submission, the SEC will seek feedback on the proposed rule change. The public has three weeks to provide comments. This initiative demonstrates the SEC's commitment to scrutinizing new financial products.

Regulatory Hurdles

In line with the crypto community's less optimistic outlook on the approval of spot Ethereum ETFs, a request has been made for public input. Seven pending applications, including those from Fidelity and BlackRock, have shown little progress.

After the Ethereum Dencun upgrade, which aimed to reduce transaction fees, launched on March 13th, Ether's value declined by nearly 12%. Similar to the increased institutional demand that followed the introduction of U.S. spot Bitcoin ETFs, the approval of spot Ethereum ETFs is anticipated to make a significant impact.

However, the SEC's postponement of decisions on BlackRock's and Fidelity's submissions, along with the neglect of the evaluation process, has raised regulatory obstacles related to Ethereum financial products. This approach differs from that of spot Bitcoin ETFs.

Eric Balchunas, an ETF analyst at Bloomberg, revised his prediction of a spot Ethereum ETF approval likelihood from 70% to 30% in May.

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