Fox Business reporter today quoted sources as saying that the SEC’s current position on the approval of Ethereum spot ETF is “forceful rejection,” but this idea faces “some internal resistance”…
(Background:
Bankless: When will Ethereum Spot ETF be approved?
)
(Background supplement:
SEC delays decision on Fidelity’s “Ethereum Spot ETF,” Bloomberg analyst reveals key time
)
After approving 11 Bitcoin spot ETFs this month, the U.S. Securities and Exchange Commission (SEC) has raised the industry’s optimistic expectations for the approval of Ethereum spot ETFs within this year. Bloomberg ETF analyst Eric Balchunas even stated earlier that the probability of Ethereum spot ETF approval in May has increased to 70%.
Currently, there are 7 Ethereum spot ETFs awaiting SEC approval, including applicants such as BlackRock, Fidelity, Grayscale, VanEck, Ark/21Shares, Invesco/Galaxy, and Hashdex.
Insider: SEC wants to “forcefully reject” the approval of Ethereum spot ETF
However, according to the latest news revealed by Fox Business reporter Eleanor Terrett on the 24th, the SEC may not approve the Ethereum spot ETF within this year as some experts expected. A source revealed that the current position of the SEC is “forceful rejection,” but this idea faces “some internal resistance.”
However, Terrett also pointed out that there are diverse views among ETF issuers, investment management companies, and some insiders close to the SEC regarding the potential expectation of approving ETH spot ETFs.
Terrett added that when insiders were asked if Gensler’s opaque stance on considering Ethereum as a potential security would affect the decision, they said that in fact, the U.S. Commodity Futures Trading Commission (CFTC) is more inclined to regard ETH as a commodity. In addition, last year’s court ruling in favor of Ripple’s partial victory regarding the determination that XRP is not a security in secondary market trading will make “Gensler taking the position that the majority of digital assets are securities” a tough battle.
Further reading:
The probability of approving Ethereum spot ETF this year is less than 50%! Morgan Creek: SEC still considers ETH as a security
Crypto Mom: Ethereum Spot ETF can be approved without litigation
In addition, SEC Commissioner Hester Peirce, known as “Crypto Mom” in the community, stated in an interview with Coinage on Tuesday that a spot Ethereum ETF can be approved without litigation.
When asked if the SEC would delay the approval of Ethereum spot ETFs, Peirce responded that she believes issuers do not need to persuade the SEC through litigation to approve ETH spot ETFs. She cited last year’s GrayScale’s victory in transforming GBTC into a Bitcoin spot ETF as an example:
Peirce also stated that the SEC may adopt the same “precedent” as GrayScale, saying, “We learned from the court that the approach we took was wrong… I think this lesson will certainly be remembered.”
Related Reports
“When will Ethereum Spot ETF be approved?” 52% of the poll participants are optimistic about before the end of 2024; TD Cowen, JPMorgan: It won’t be approved soon
Bloomberg analyst: Ethereum Spot ETF is expected to be listed “this year”! The probability of SEC approval in May reaches 70%
It’s Ethereum’s turn! Spot ETF is expected to be approved and listed this year! Bloomberg analyst: SEC has implicitly recognized ETH as a commodity
Caught it! SEC Chairman Gary Gensler’s “2018 claim” that Ethereum is not a security