Asset managers are optimistic that the Securities and Exchange Commission (SEC) will approve the first U.S. exchange-traded fund (ETF) that directly invests in Ethereum, according to Bloomberg. Despite the poor early market reaction, the SEC's recent feedback to issuers has been mainly minor issues, which issuers are now addressing. Companies including BlackRock Inc., Fidelity Investments, 21Shares and Invesco have applications pending approval. Many issuers have not yet disclosed the fees of their respective funds, a necessary step before the funds begin trading. Assuming the fund is approved, a key question is whether the Ethereum portfolio will stimulate demand like the historic debut of the U.S. spot Bitcoin ETF in January this year. The latter has accumulated $52 billion in assets. Ethereum fell about 1.6% to $3,409 around 11:25 a.m. in New York. The second-largest cryptocurrency after Bitcoin has risen 50% so far this year.