SEC’s Stance on Spot Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) is showing resistance to approving spot Ethereum Exchange-Traded Funds, with sources indicating internal pushback against the proposal. Commissioner Hester Peirce is advocating for a more straightforward decision process, criticizing the reliance on legal wins to guide ETF approvals. Despite the SEC resistance, asset managers like BlackRock express optimism, citing the successful launch of Bitcoin spots as a potential catalyst for Ethereum spot ETF approval. However, further insights into the SEC’s stance and engagement with S-1 registration forms are expected in the coming months.
Varying Expectations
There are varying expectations regarding the approval of spot Ethereum ETFs. Bloomberg ETF analyst Eric Balchunas suggests a 70% chance of approval in May, while JP Morgan’s Nikolaos Panigirtzoglou is less optimistic, predicting a 50% chance. JP Morgan analysts remain cautious due to regulatory and judicial considerations and uncertainty surrounding Ethereum’s classification as a commodity or security.
Upcoming Developments
The SEC’s recent delay in deciding on Fidelity’s Ethereum Spot ETF extends the evaluation period until March 5, 2024, with the final decision expected between late January and August 2024.
Hot Take: The Uncertain Future of Spot Ethereum ETFs
The potential approval of spot Ethereum ETFs is faced with uncertainty, with differing opinions and conflicting signals from the SEC, as well as ongoing regulatory ambiguities. The decision regarding Ethereum spot ETFs remains ambiguous, leaving the final outcome up in the air.
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