FOX Business reporter Eleanor Terrett recently shed light on the ongoing battle surrounding spot Ethereum ETF approvals. She revealed that there is a strong opposition within the U.S. Securities and Exchange Commission (SEC) towards approving a spot Ethereum ETF. Terrett attributed this information to an undisclosed source, leaving us to wonder whether this source is a member of the SEC or an asset manager seeking approval.
One notable figure in the crypto community, SEC commissioner Hester Peirce, has been an advocate for a more straightforward decision-making process. Peirce has expressed her criticisms of the current approach, which relies on court cases to compel action. In an interview with crypto news platform Coinage, she stressed the importance of “regular way consideration” in ETF approvals.
Terrett anticipates further indications of the SEC’s stance on spot Ethereum ETFs in the months to come. She suggests that their engagement with S-1 registration statements will provide valuable insights. Historically, the SEC has posted notices of meetings with asset managers and exchanges on each ETF’s page as they occur. These updates will likely shed light on the SEC’s current position on spot Ethereum ETFs.
Conflicting Sentiments
Despite the apparent resistance within the SEC, Terrett also notes that the asset managers responsible for issuing these funds remain optimistic about approval. One issuer confidently stated that the successful launch of spot Bitcoin ETFs will push the SEC to approve spot Ethereum ETFs. Another unnamed issuer takes BlackRock’s strong ETF approval track record and the Commodity Futures Trading Commission’s comments on Ethereum being a commodity into consideration when predicting a spot Ethereum ETF launch by the end of the summer. The issuer also believes that Ripple’s partial legal victory against the SEC and the broader implications for labeling crypto assets as securities could play a role, but the direct impact on spot Ethereum ETF approvals remains uncertain.
Varying Expectations
The public’s expectations regarding spot Ethereum ETF approval vary. Bloomberg ETF analyst Eric Balchunas leans towards optimism, positing a 70% chance of approval in May. JP Morgan executive Nikolaos Panigirtzoglou takes a more cautious stance, predicting a 50% chance of approval. Polymarket’s odds fall at 53% likelihood of approval.
The battle for spot Ethereum ETF approvals continues to face significant challenges. The opposing sentiment within the SEC, as well as the varying expectations within the market, contribute to the uncertainty surrounding the future of spot Ethereum ETFs. Investors and cryptocurrency enthusiasts eagerly await further developments and announcements from the SEC, hoping for a breakthrough that will open the doors to wider adoption and investment opportunities in Ethereum.
Leave a Reply