The U.S. SEC May Reject Ethereum ETFs, Says VanEck CEO
The CEO of VanEck predicts that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve Ethereum (ETH) exchange-traded funds (ETFs). While Bitcoin ETFs were approved by various financial institutions earlier this year, Jan van Eck believes that ETH ETFs will face rejection from the regulatory agency.
First in Line for Rejection
- VanEck and Ark Invest CEO Cathy Wood were the first to file for Ethereum ETFs in the U.S.
- This puts them at the forefront of potential rejection in May.
- Van Eck explains that the SEC provides feedback on applications, and this process has been ongoing for weeks, signaling a possible rejection for Ethereum.
Bitcoin ETF Approval vs. ETH ETF Decision
- The SEC approved Bitcoin ETFs in January after years of denials, prompted by a court order.
- ETFs allow traders to access assets without ownership.
- However, the SEC announced a 60-day delay in the decision on an Ethereum ETF in March.
- The delay indicates a thorough consideration of factors related to Ethereum.
Advocacy for ETH ETFs
- Leading crypto firms like Coinbase and Consensys are advocating for ETH ETF approval.
- They emphasize Ethereum’s cybersecurity and anti-fraud capabilities, surpassing those of Bitcoin.
Hot Take: The Future of Ethereum ETFs Hangs in the Balance
As the regulatory landscape evolves, the fate of Ethereum ETFs remains uncertain. While Bitcoin ETFs have gained approval, the SEC’s stance on ETH ETFs indicates a more cautious approach. Crypto enthusiasts await the decision in May to determine the future of Ethereum’s ETF prospects.
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