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Bloomberg Senior ETF Analyst Eric Balchunas said ethereum spot ETFs may never be approved due to the SEC's opinion on Ether.
In his latest post on x, Balchunas emphasized that the US SEC considers ethereum (eth) a security; Therefore, the probability of approval of an ethereum spot ETF is almost zero.
To support his argument, he recalled that the regulator had asked commentators on spot ETFs whether entities had properly submitted proposals to list commodity ETFs.
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“This shows that the SEC may be considering eth a security in its denial. Our chances of approval remain the same: slim to none.”
Eric Balchunas, Senior ETF Analyst at Bloomberg
Bloomberg analyst James Seyffart also believes that the chances of the SEC abandoning ethereum ETFs increased after the regulator again called for the safety of eth.
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“Also, I might add. Personally, I still think it's more likely that the SEC will not claim ethereum as a security in these denials coming over the next week. But we will know soon.”
James Seyffart, Bloomberg analyst
Last week, the SEC extended the review period for an application to launch an ethereum-based spot ETF from Invesco and Galaxy. The next deadline is July 5.
Additionally, on April 23, the SEC postponed its decision on the Franklin Templeton ethereum spot ETF until June 11. Prior to this, the regulator extended the review period for a similar request from BlackRock.
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