SEC’s Stance on Ethereum ETFs Still Uncertain
The U.S. Securities and Exchange Commission (SEC) recently approved spot Bitcoin ETF applications, but the fate of Ethereum ETF applications remains unclear. Various industry experts have conflicting opinions on whether the SEC will approve these applications. Companies like BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex have submitted spot Ether ETF applications and are awaiting a decision from the SEC.
The recent approval of spot Bitcoin ETFs has given some hope to crypto issuers who believe that the SEC is becoming more open to cryptocurrencies. One issuer with an ETH Spot ETF application stated that the success of Bitcoin ETFs might influence the approval of spot Ether ETFs.
Divided Opinions on Ether ETF Approval
While some sources are confident about the approval of spot Ether ETFs, others believe that the SEC is firmly against allowing an Ethereum ETF. There are indications that internal resistance from within the regulatory body is hindering the possibility of approval. However, some believe that BlackRock’s track record of gaining SEC approval could pave the way for spot Ether ETFs to launch by the end of summer 2024.
There are concerns about SEC Chair Gary Gensler’s stance on Ethereum as a potential security. However, the classification of ETH as a commodity by the Commodity Futures Trading Commission (CFTC) and a court ruling regarding Ripple’s XRP being a security might sway the SEC’s decision.
SEC Commissioner Hester Pierce’s Perspective
SEC Commissioner Hester Pierce, also known as “Crypto Mom,” has expressed her opinion on Ethereum ETFs. She believes that unlike with Bitcoin ETFs, the SEC would not require a lawsuit to approve Ethereum ETFs. This statement refers to the Grayscale court ruling, which some argue influenced the SEC’s decision on Bitcoin ETFs.
Pierce emphasized that the SEC should not need a court to point out flaws in their approach. Additionally, the SEC has clarified that approving spot Bitcoin ETFs does not guarantee approval for other cryptocurrency-related applications.
Hot Take: What Does the Future Hold for Ethereum ETFs?
The fate of Ethereum ETF applications remains uncertain, with conflicting opinions from industry experts. While the approval of spot Bitcoin ETFs may indicate a shift in the SEC’s stance on cryptocurrencies, there are still hurdles to overcome. The SEC’s decision on spot Ether ETFs could be influenced by internal resistance, BlackRock’s track record, and the regulatory classification of Ethereum. Commissioner Hester Pierce’s perspective provides some optimism for the approval of Ethereum ETFs without the need for a lawsuit. However, it is important to note that the approval of Bitcoin ETFs does not automatically guarantee approval for other cryptocurrencies.
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