Deniz 
House members are urging the securities regulator to approve the new product amid rising expectations of the possible approval of a spot Ether (ETH) exchange-traded fund (ETF) in the United States.
On May 22, a bipartisan group of House legislators—including Democrat Josh Gottheimer and majority whip Tom Emmer—sent a letter to SEC Chair Gary Gensler requesting approval of spot Ether ETFs. The legislators contended that a possible Ether ETF would provide ETH in a more controlled and safe form to investors.
“We urge the Commission to maintain a consistent and equitable approach when reviewing upcoming applications for other digital asset-backed ETFs,” the lawmakers said, adding:
“Particularly, the Commission should assess the pending Ether ETF applications using the same values proposed in the approval of the spot Bitcoin ETPs, as the legal considerations relevant to Bitcoin also apply to Ether.”
Related: BlackRock, Grayscale, Bitwise Amend Ether ETF Proposals to Bypass Regulatory Roadblocks
Eric Balchunas, a Bloomberg ETF analyst, visited X on May 23 to break the letter’s news. Though it did not specify any others from Ether, he underlined that the letter mentioned ETFs based on “other digital assets.”
“It’s noteworthy to me that they bring up other digital assets instead of merely Ether. It will be interesting to observe how far and how fast the ETF sector pushes the envelope,” Balchunas noted. The expert also pointed out that it would not be shocking if the legislators would “pounce on SEC vulnerability and file all kinds of coins” to test the boundaries.
Global Developments in Ether ETFs and Regulatory Scrutiny
The news comes within the bitcoin world, expecting the SEC to decide on the approval of an Ethereum ETF by the end of this month.
As US legislators have been lobbying the SEC to approve a spot in the in the ETH ETF, the community has been more hopeful about possible approval.
Another set of legislators, including House Financial Services Committee chairman Patrick McHenry and subcommittee chairs Bill Huizenga, demanded on May 22 data pertaining to the custody services provider Prometheum from the SEC. They also voiced dissatisfaction with the SEC’s answer to a past investigation on Ether’s classification as a security instead of a commodity.
The announcement coincides with Hong Kong authorities apparently investigating the possibility of allowing staking for spot Ether ETFs, which commenced trading on April 30, 2024, alongside spot Bitcoin ETFs. In contrast, the U.S. inaugurated spot Bitcoin ETFs in January 2024 but has yet to authorize a spot Ether ETF.