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Jake Chervinsky, chief legal officer at Variant Fund, raised questions about the SEC's approval of ethereum spot ETFs in the US ahead of the May deadline.
Chervinsky highlighted the complex legal and political environment in Washington, DC, as a major factor that could lead to the SEC rejecting applications or requesting withdrawal despite the successful launch of bitcoin spot ETFs in January.
SEC Chairman Gary Gensler clarified that the approval of bitcoin ETFs should not be interpreted as broader acceptance of cryptocurrency ETFs, emphasizing bitcoin's unique status compared to other cryptocurrencies, which Gensler considers securities.
The Ether ETF conversation has gained momentum with applications from major financial firms including BlackRock, Fidelity, and Franklin Templeton.
Bloomberg ETF analyst Eric Balchunas suggested a 70% chance of approval before the May deadline. However, this was met with skepticism from Chervinsky, who criticized overly optimistic views about BlackRock's influence.
Opinions within the industry vary, with some analysts downplaying the importance of Ether ETFs compared to their bitcoin counterparts. In contrast, ETF shop President Nate Geraci predicted that the impact of Ether ETFs could be underestimated, citing the significant market capitalization of Ether (eth) relative to bitcoin (btc).
Discussions also extend to the timing of potential approval, with some, like Ikigai Asset Management's Travis Kling, suggesting August could be a more realistic timeline for approval.
