Mark Yusko, Founder and CEO of Morgan Creek Capital, recently stated in an interview that the probability of a Ethereum spot ETF being approved by the SEC in 2024 is less than 50%.
Background:
Analysts from Bloomberg: Ethereum spot ETF expected to be listed “this year”! May SEC approval probability reaches 70%.
Table of Contents:
Mark Yusko: ETH may still be considered a security.
Current status of Ethereum spot ETF applications.
ETH fails to surpass $2600.
After the SEC approved 11 Bitcoin spot ETFs in one go, it was believed that Ethereum spot ETFs also had the chance to be approved for listing this year. However, Mark Yusko, Founder and CEO of Morgan Creek Capital, who was once optimistic about Bitcoin spot ETFs, poured cold water on the market in a recent interview with Cointelegraph:
Mark Yusko: ETH may still be considered a security.
Regarding the negative attitude towards Ethereum spot ETFs, Mark Yusko explained that according to SEC Chairman Gary Gensler’s implications, even if they approve the Bitcoin spot ETF applications, the SEC still has biases against cryptocurrencies.
On the other hand, Mark Yusko added that currently only Bitcoin is considered by the SEC as a commodity with value storage capability, while Ethereum may still be classified as a security. This is another major obstacle for the SEC to approve Ethereum ETFs.
Current status of Ethereum spot ETF applications:
It is understood that there are currently 7 Ethereum spot ETF applications awaiting approval from the SEC. The applicants include BlackRock, Fidelity, Grayscale, VanEck, Ark/21Shares, Invesco/Galaxy, and Hashdex. At the same time, the final approval deadlines for VanEck, ARK 21Shares, and Hashdex Ethereum spot ETFs fall in May 2024, while the others will be decided within the next 6 to 8 months.
It is worth mentioning that, contrary to Mark Yusko’s viewpoint, Bloomberg ETF analyst James Seyffart stated at the beginning of this year that when the SEC approved 9 Ethereum-related futures ETFs last year, they “implicitly” acknowledged Ethereum as a commodity, indicating that the first Ethereum spot ETF could be listed this year.
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Ethereum spot ETFs awaiting approval from the SEC. Source: Bloomberg
ETH fails to surpass $2600:
In terms of price, although the Ethereum London hard fork has officially launched on the Goerli test network, the number of participating validators is low, and there have been instances of forks. Combined with the decline in Bitcoin, ETH broke through $2600 yesterday around 5:00 AM but has since been fluctuating and declining. At the time of writing, it was reported at $2,527, a 2.3% decrease in the past 24 hours.
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Source: Binance Spot
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