Ethereum ETF’s status – Here’s why this isn’t ‘bullish in any capacity’

• US SEC seeks feedback on ETH ETF functions for Grayscale, Bitwise and Bitwise. 
• Analyst maintains low odds of Could approval, calls the feedback “customary process.”

On the third of April 2024, the U.S. Securities and Trade Fee (SEC) opened a public feedback interval for Ethereum [ETH] ETF submitting amendments tied to Bitwise, Constancy and Grayscale. 

The general public remark interval will run for 21 days. This growth has excited some crypto customers, who time period the event a “giga bullish” state of affairs for ETH. 

Sadly, one of many business analysts has poured chilly water on it. James Seyffart, a Bloomberg ETF analyst, called the general public remark window “customary process.” 

“Asking for public feedback on a 19b-4 is customary process. Each single 19b-4 ETF submitting goes by way of the identical course of (whether or not authorized or denied). It’s not “bullish” in any capability for Ethereum ETFs.”

ETH ETF: Could approval dilemma

Requested whether or not BlackRock will be capable of pull approval for its spot in Ethereum ETF, Seyffart mentioned,

“Good query. I’d assume they wouldn’t withdraw, however I wouldn’t put it previous Larry to tug a rabbit out of a hat, both. Haha. We’re low odds—however not zero for a purpose.”

That’s an outright dilemma for Could approval.  

Nonetheless, Sam Enzer, accomplice at Cahill Gordon and Reindel, claims that the SEC might reject approval in Could because of the threat of market manipulation.

“I believe the SEC, not less than within the first occasion, will deny or reject the functions. I believe they’ll depend on related arguments that there’s a threat of market manipulation, that they want extra surveillance.” 

Moreover, Enzer highlighted that ETH staking could possibly be one of many greatest considerations for the SEC. 

Amidst the Could approval dilemma, ETH has slumped 9% on weekly charts, dropping from $3645 to $3200, partly due to Bitcoin’s [BTC] large drawdown. 

Ought to the bearish overhangs from the present unfavorable macro entrance persist, ETH bears might lengthen the drop to a $3000 psychological degree.