Experts Doubt Approval of Ethereum ETFs by Regulators
Industry experts are skeptical about the approval of Ethereum (ETH) spot ETFs for public trading by regulators next month. A denial could delay U.S. investors from accessing such products until at least December 2024, lagging behind Bitcoin (BTC) in Wall Street adoption.
Challenges Faced by Ethereum ETFs
- Sources suggest that meetings between the Securities and Exchange Commission (SEC) and aspiring Ethereum ETF issuers have been one-sided.
- SEC staff have not engaged in substantive discussions about the proposed products, even with application deadlines approaching.
- Unlike the detailed conversations preceding Bitcoin spot ETF approvals, Ethereum ETF applicants have not received similar support.
- Experts believe there is a possibility of approval delays until later in 2024 due to regulatory uncertainties.
Potential Lawsuit for Ethereum ETFs
- Speculations suggest that the approval of ether ETFs may only happen after a potential lawsuit challenges the denial.
- Bloomberg ETF analyst Eric Balchunas raised concerns about funding another lawsuit by Grayscale for potential smaller financial rewards.
- The SEC chairman’s personal criticisms of crypto, citing limited utility beyond illicit activities and centralization, may influence the decision-making process.
- Bitwise Chief Investment Officer (CIO) Matt Hougan speculates that the SEC’s lack of time for product review could be used as justification for denying Ethereum ETFs.
Hot Take: Uncertain Future for Ethereum ETFs
The future of Ethereum ETFs remains uncertain as regulators show reluctance towards their approval, potentially leading to further delays. The possibility of a lawsuit challenging denials could be the next course of action for ETF issuers, but funding constraints and regulatory skepticism pose significant challenges.
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