<img src="https://cryptoslate.com/wp-content/uploads/2024/01/ethereum-etf-wall-street.jpg” />
FOX Business reporter Eleanor Terrett reported on a wide range of expectations regarding ethereum ETF spot approvals in January 23.
Notably, Terrett suggested that the US Securities and Exchange Commission (SEC) is opposed to approving an ethereum spot ETF. She said:
“Another source tells me that the line at the SEC right now is a 'hard no' and there is currently 'some internal resistance' to the idea.”
Terrett did not indicate whether that source is a member of the SEC itself or a member of an asset manager seeking SEC approval.
Terrett also noted that SEC Commissioner Hester Peirce, known for her pro-cryptocurrency stances, has advocated for a simpler decision process. The SEC approved bitcoin spot ETFs in part because one applicant, Grayscale, won a legal victory, as SEC Chairman Gary Gensler explained in a bitcoin-011023″>statement. Peirce criticized that approach today in an interview with crypto news platform Coinage, as he said ETF approvals should involve “regular consideration” rather than court cases forcing action.
Terrett concluded that more indications of the SEC's stance will emerge in the coming months as it becomes clear whether it engages with S-1 registration statements. The SEC typically posts notices of meetings with asset managers and exchanges on each ETF's page as they occur.
Asset managers seem optimistic
Despite resistance within the SEC, Terrett suggested that the asset managers responsible for issuing each fund are optimistic about approval.
According to Terrett:
“(An) issuer with an eth spot ETF application says it is confident that the smooth approval and launch of bitcoin spot ETFs will force the (SEC) to approve eth spot ETFs.”
Another anonymous issuer said they expect an ethereum spot ETF to launch in late summer due to the SEC's early approval of ethereum futures ETFs and BlackRock's strong ETF approval track record.
That source also cited CFTC comments suggesting ethereum is a commodity, as well as Ripple's partial legal victory against the SEC, as factors that could more broadly prevent the SEC from labeling cryptoassets as securities. However, it is not clear that those developments will directly affect the timely approvals of ethereum ETFs in the coming months.
Public expectations surrounding approval vary. Eric Balchunas, Bloomberg ETF Analyst postulate There is a 70% chance that an ethereum spot ETF will be approved in May, while JP Morgan executive Nikolaos Panigirtzoglou has predicted a 50% chance of approval. Polymarket fees ethereum-etf-approved-by-may-31?tid=1706049978719″>suggest a 53% chance of approval.
