The SEC has quietly begun the process of weighing whether to approve an exchange-traded fund (ETF) for the cryptocurrency ether (ETH).

The backers of the EtherIndex Ether Trust first filed in July 2016, seeking to launch an ETF backed by a cache of ethers on the NYSE Arca exchange. NYSE Arca then filed for a proposed rule change clearing the way for the ETF listing in December, according to a notice published in January.

A new notice from the SEC reveals that the agency has begun weighing whether it will approve the proposed ETF.

The agency remarked in the notice:

The potential launch of an ether ETF – though subject to final approval – would mark the latest development in the ether's market, following recent price increases that have seen the value of 1 ETH rise above $50.

The SEC is also seeking comments and feedback on which approach it should take, though notably, a previous comment solicitation went unanswered, according to the agency.

It remains to be seen whether the SEC moves to approve the proposed ETF. In the past month and a half, the SEC has rejected rule changes that would have cleared the way for two bitcoin ETFs, citing concerns over market surveillance and insufficient regulation.

A representative for EtherIndex did not immediately respond to a request for comment.

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