SEC Commissioner’s Optimistic Outlook On Ethereum ETFs
The United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce, known as “Crypto Mom” for her positive stance on cryptocurrencies, recently discussed Ethereum in an interview with Coinage Media. Peirce suggested that the SEC may not need a lawsuit to guide its decision on approving Ethereum spot ETFs.
In the interview, Peirce referred to the Grayscale court ruling that played a significant role in the SEC’s approval of spot Bitcoin ETFs. She emphasized that the SEC should not wait for court interventions to correct its approach, acknowledging that the regulatory body’s actions have been arbitrary and capricious.
“We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right […] There’s a lot of work that goes into getting an exchange-traded product ready for market, including making sure that the disclosures are lining up with how the product actually works […] Having heard from a court that the approach we were taking was wrong […] I think that kind of a lesson will certainly stick with us.”
This acknowledgment suggests that there may be an openness to applying the same precedent to future Ethereum ETF applications. However, it is important to consider that decisions of the entire body cannot be determined by a single Commissioner.
The SEC recently extended its decision timeline for Fidelity’s proposed Ethereum spot ETF. The extension provides additional time for thorough review of the proposal.
Chances Of An Ethereum Spot ETF Approval
The crypto community remains cautiously optimistic about the approval of an Ethereum spot ETF. Analysts like Bloomberg’s Eric Balchunas believe there is a 70% likelihood of approval by May, considering the multiple pending applications under review.
Prominent financial firms such as BlackRock, ARK 21Shares, VanEck, Invesco Galaxy, Fidelity, Hashdex, and Grayscale are contenders in the race to obtain SEC approval for their spot Ethereum ETF proposals.
Digital asset lawyer Joe Carlasare expresses confidence in approval within the year. He points out the presence of ETH futures trading on the Chicago Mercantile Exchange (CME) and the high correlation between ETH futures and the spot market as factors that support approval.
Hot Take: Potential for Ethereum ETF Approval
The positive outlook from SEC Commissioner Hester Peirce regarding Ethereum spot ETFs suggests a potential shift in the SEC’s approach. By acknowledging the arbitrariness of previous actions and referencing the Grayscale court ruling, there is hope for a more favorable regulatory environment for Ethereum ETFs.
The extension of Fidelity’s proposal review indicates that the SEC is taking its time to thoroughly consider the issues raised. With multiple applications pending review and prominent financial firms vying for approval, there is a significant chance of an Ethereum spot ETF being approved by May.
If approved, an Ethereum spot ETF could provide investors with easier access to the cryptocurrency market and potentially contribute to increased adoption and mainstream acceptance of Ethereum.
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