The U.S. Securities and Exchange Commission (SEC) recently approved 11 Bitcoin spot ETFs, raising optimism about whether an Ethereum spot ETF will be approved this year. Eric Balchunas, an ETF analyst at Bloomberg, said that the probability of an Ethereum spot ETF being approved in May has risen to 70%.
There are currently 7 Ethereum spot ETFs waiting for SEC approval. Applicants include BlackRock, Fidelity, Grayscale, VanEck, Ark/21Shares, Invesco/Galaxy and Hashdex.
Informed people: The SEC wants to "forcibly refuse" to approve the Ethereum spot ETF
According to the latest news from Fox Business reporter Eleanor Terrett, the SEC may refuse to approve the Ethereum spot ETF within this year. Sources revealed that the SEC’s current position is to forcefully refuse, although there is some internal resistance.
However, the potential anticipation of ETH spot ETF approval has triggered many different opinions. There is plenty of disagreement among ETF issuers, investment managers and sources close to the SEC.
A Bitcoin spot ETF issuer that has applied for an Ethereum spot ETF said they are confident in the approval and smooth launch of the Bitcoin spot ETF. They believe that once the Bitcoin spot ETF is approved, the SEC may be forced to approve the Ethereum spot ETF. In addition, some believe that the successful listing of an Ethereum futures ETF last year and BlackRock’s successful experience with ETF approvals lead them to believe that an Ethereum spot ETF may be launched by the end of the summer.
Terrett added that when sources were asked whether Gensler’s stance on Ethereum’s potential security nature would influence the decision, they stated that the U.S. Commodity Futures Commission (CFTC) is leaning towards treating Ethereum as a commodity. In addition, Ripple won a partial victory in court last year when XRP traded in secondary markets was ruled not to be a security, which will make it more difficult for Gensler to take the position that most of the digital assets are considered securities. So Gensler faces an uphill battle.
Crypto Mom: Ethereum spot ETF can be approved without litigation
In addition, SEC Commissioner Hester Peirce, who was dubbed the "Crypto Mom" by the community, said in an interview with Coinage on Tuesday , a spot Ethereum ETF does not require court proceedings to be approved.
When asked whether the SEC would delay approval of an Ethereum spot ETF, Peirce responded: She did not think issuers would need to litigate to convince the SEC to approve an ETH spot ETF. She cited last year's Grayscale ruling on GBTC's transformation into a Bitcoin spot ETF as an example: We need to consider these products in a "conventional way", just like we consider similar products. We should not need the courts to tell us that our practices are "arbitrary and capricious" so that we can make the right decision. That's not how we approve.
Peirce also said that the SEC may adopt the same "precedent" of Grayscale. "We learned from the court that the approach we took was wrong... I think such lessons will definitely be engraved in our hearts."
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