Spot Ether ETFs Facing Approval Doubts
Industry professionals are expressing skepticism about spot ether exchange-traded funds getting approval from the U.S. Securities and Exchange Commission (SEC) in May. A report from Reuters indicates that sources in the industry anticipate the SEC denying applications for spot ether ETFs in May after disappointing interactions with U.S. issuers and other organizations in recent times.
One-Sided Meetings with the SEC
According to Reuters, representatives from the industry have mentioned that recent discussions between issuers and the SEC have been unbalanced, with agency personnel not engaging in meaningful conversations about the ETF applications that were submitted.
โ Four industry representatives believe that the meetings with the SEC have been one-sided
โ No substantive discussions were held regarding the ETF applications
โ Expectations are higher for a delay in approval until later in 2024 or beyond
โ Regulatory uncertainty continues to cloud the picture, according to VettaFi Head of ETF Analysis Todd Rosenbluth
Downside Pressure on Etherโs Price
Hong Fang, the president of OKX cryptocurrency exchange, mentioned to Reuters that uncertainties surrounding the approval of spot ether ETFs could lead to downward pressure on the value of the second-largest digital asset by market capitalization.
โ Doubts surrounding spot ether ETF approvals may create downside pressure on etherโs value
โ Expectations of delayed approval impacting price negatively
โ Hong Fang highlights concerns about the potential impact on prices due to approval uncertainties
โ Building expectations of denial could lead to further price decline
Issuer Filings and SEC Deadlines
VanEck, ARK Investment Management, and seven other issuers have submitted applications to the SEC to launch ETFs that would track the spot price of ether. The SEC has set deadlines to review VanEckโs and ARKโs submissions on May 23 and May 24, respectively.
โ VanEck, ARK Investment Management, and seven other issuers are seeking approval for spot ether ETFs
โ ETFs would be designed to track the spot price of ether
โ SEC deadlines for VanEck and ARK submissions set for May 23 and May 24
โ Decision on approval expected to be made following the review process
Impact on Etherโs Price
As a result of the uncertainty surrounding the approval of spot ether ETFs, the price of ether experienced a decrease of over 5.5% in the past 24 hours, with the digital asset trading at $3,084 at 7:07 a.m. ET, according to The Blockโs Price Page.
โ Etherโs value fell by more than 5.5% in the last 24 hours
โ Trading at $3,084 as reported by The Block
โ Price decline attributed to doubts about spot ether ETF approval
โ Market reacting to uncertainties with downward pressure on etherโs value
Hot Take: Will Spot Ether ETFs Get Approved?
In conclusion, doubts loom over the approval of spot ether exchange-traded funds by the U.S. Securities and Exchange Commission in May. The ongoing uncertainty and lack of substantive discussions between issuers and the SEC indicate a challenging approval process for spot ether ETFs.
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