Ethereum spot ETF faces skepticism as SEC decision looms

Several ethereum spot ETF applications are pending SEC approval. As decision date approaches, uncertainty grows and financial and crypto leaders express A mix of skepticism and hope.

A recent bitcoin-ether-etfs-crypto-sec-a4bfa93f” target=”_blank” rel=”noopener noreferrer”>report from Barron's suggests a current and frustrating situation for issuers of exchange-traded funds (ETFs).

According to Barron, unlike the open dialogue that paved the way for place bitcoin ETFs, the conversation between issuers and the SEC over ethereum ETFs seems more one-sided. This lack of commitment portends a difficult road ahead for ethereum ETFs.

“Some ETF issuers have met with the SEC to discuss their products, but So far, those discussions have been largely one-sided, without the agency providing companies with the critical feedback needed to finalize their products, according to people familiar with the matter,” Barron's wrote. “At this point in the bitcoin ETF process, issuers were already committed in a robust back and forth with the agency staff.”

While Barron's is skeptical, JPMorgan believes the question is “when” and not “if.”

Analyst Nikolaos Panigirtzoglou told The Block that a place The ethereum ETF may still be approved, but it would take longer than expected.

According to him, ETF companies can take legal action against the agency if the SEC does not approve these filings. “If there is no timely approval of the ethereum ETF in May, so we assume that there will be “There will be a litigation process after May,” ethereum-etf-jpmorgan?utm_source=twitter&utm_medium=social” target=”_blank” rel=”noopener noreferrer”>saying Panigirtzoglou.

Panigirtzoglou suggested that the lawsuit will likely end against the SEC, and only as what happened with In Grayscale, the SEC would eventually be “forced” to approve ethereum spot ETFs.

VanEck, one of the ethereum spot fund issuers, projects a complete rejection of the ETF filings. Jan van Eck, CEO of VanEck bitcoin-etf-issuers-sec-wont-approve-ether-eth-exchange-traded-fund-.html” target=”_blank” rel=”noopener noreferrer”>saying in an interview with CNBC that VanEck and Ark Invest apps “They are kind of first in line for Can…probably Being rejected.”

“The way in which the legal process goes Will regulators give you feedback on your application, and that This happened for weeks and weeks before bitcoin ETFs came out, and just now, pins They're falling <span class="issue-underline underline decoration-2 underline-offset-4 transition decoration-border-brand-default (.long-form-editing-active_&):decoration-border-brand-default/50 hover:bg-bg-brand-light-default" data-issueid="ac5b0c3a-0794-4777-a0df-cd6697017f9d" aria-label="open issue for the following text as far as ethereum is concerned,”” data-testid=”issue-underline:undefined”>as far as ethereum is concerned”, van Eck said.

“576 to one”

For many fund managers, the SEC's lack of commitment is an agonizing waiting game. BlackRock, however, might be more accustomed to this process.

BlackRock has a track record of 576 ETF approvals with just 1 rejection. This high success rate creates a positive outlook for the asset manager's ethereum spot ETF application.

Recently, ethereum has gained attention after news emerged that the ethereum Foundation is under investigation by an undisclosed state authority. Speculation suggests that this scrutiny, possibly by the SEC, is aimed at classifying ethereum's native token, eth, as a security.

Despite these speculations, BlackRock CEO Larry Fink said that an ethereum spot ETF could still be possible even if eth is classified as a security.

Jake Chervinsky, Legal Director of Variant Fund, x.com/jchervinsky/status/1763707097680613518″ target=”_blank” rel=”noopener noreferrer”>He suggested Possible withdrawal request from BlackRock. He noted that BlackRock's track record of successful ETF approvals is attributed to a collaborative approach with the SEC, not just forceful tactics.

“If the SEC asks Blackrock and the other eth ETF sponsors to withdraw (a common practice), I bet they will,” Chervinsky commented.