Fox Business reporter today cited insider sources as saying that the SEC’s current position on approving Ethereum spot ETFs is “forceful rejection,” but this idea faces “some internal resistance”…
(Previous summary:
Bankless: When will Ethereum spot ETF be approved?
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(Background supplement:
SEC postpones decision on Fidelity’s “Ethereum spot ETF,” Bloomberg analyst reveals key time
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After approving 11 Bitcoin spot ETFs this month, the U.S. Securities and Exchange Commission (SEC) has raised optimistic expectations within the industry for Ethereum spot ETFs to pass within this year. Bloomberg ETF analyst Eric Balchunas recently stated that the probability of Ethereum spot ETFs being approved in May has increased to 70%.
Currently, there are 7 Ethereum spot ETFs awaiting SEC approval, including applicants such as BlackRock, Fidelity, Grayscale, VanEck, Ark/21Shares, Invesco/Galaxy, and Hashdex.
Insider: SEC wants to “forcefully reject” approval of Ethereum spot ETF
However, according to the latest information revealed by Fox Business reporter Eleanor Terrett today, the SEC may not approve the Ethereum spot ETF within this year as some experts expected. An insider leaked that the SEC’s current position is “forceful rejection,” but this idea faces “some internal resistance.”
But at the same time, she also pointed out that there are many different opinions among ETF issuers, investment management companies, and some sources close to the SEC regarding the potential expectation for the approval of ETH spot ETFs.
Terrett added that when insiders were asked if Gensler’s opaque position of considering Ethereum as a potential security would affect the decision, they said that in fact, the U.S. Commodity Futures Trading Commission (CFTC) is more inclined to consider ETH as a commodity. In addition, last year’s court ruling in favor of Ripple regarding the judgment that $XRP is not a security in secondary market transactions would make “Gensler taking the position that most digital assets are securities a tough battle.”
Further reading:
Probability of Ethereum spot ETF approval this year is less than 50%! Morgan Creek: SEC still considers ETH as a security
Crypto Mom: Ethereum spot ETF can be approved without litigation
In addition, SEC Commissioner Hester Peirce, also known as “Crypto Mom,” stated in an interview with Coinage on Tuesday that a spot Ethereum ETF can be approved without going through litigation.
When asked if the SEC would delay approving Ethereum spot ETFs, Peirce replied that she believes issuers don’t need to convince the SEC through litigation to approve ETH spot ETFs. She cited last year’s victory for Grayscale’s transformation of GBTC into a Bitcoin spot ETF as an example:
Peirce also mentioned that the SEC may adopt the same “precedent” as Grayscale, “We learned from the court that the approach we took was wrong… I think this lesson will definitely be remembered.”
Related reports
“When will Ethereum spot ETF be approved?” 52% of the survey respondents are optimistic about before the end of 2024; TD Cowen, JPMorgan: Approval won’t come soon
Bloomberg analyst: Ethereum spot ETF is expected to “be listed this year”! Probability of SEC approval in May reaches 70%
Now it’s Ethereum’s turn! Spot ETF expected to be approved and listed this year! Bloomberg analyst: SEC has tacitly recognized ETH as a commodity
Caught it! SEC Chairman Gary Gensler’s “2018 assertion” that Ethereum is not a security