The approval of a spot Ethereum ETF has been a topic of discussion and speculation among investors and industry insiders. While there are varying expectations and opinions on the matter, it seems that the U.S. Securities and Exchange Commission (SEC) is currently hesitant to approve such an ETF. In this article, we will analyze the factors contributing to this uncertainty and explore the potential outcomes.
FOX Business reporter Eleanor Terrett recently shed light on the SEC’s stance towards spot Ethereum ETFs. According to Terrett, an inside source revealed that the SEC’s position is a “hard no” at the moment, with some internal resistance within the organization itself. However, it remains unclear whether this source is a member of the SEC or an asset manager seeking approval from the regulatory body.
SEC Commissioner Hester Peirce, known for her positive stance on cryptocurrencies, has expressed her support for a more straightforward decision-making process regarding ETF approvals. In contrast to the SEC’s partial approval of spot Bitcoin ETFs, which was influenced by legal battles, Peirce believes that ETF approvals should be based on “regular way consideration” rather than court cases. This aligns with her overall pro-cryptocurrency stance.
Further clues about the SEC’s stance on spot Ethereum ETFs are expected to emerge in the coming months. The SEC’s engagement with S-1 registration statements and its meetings with asset managers and exchanges regarding ETFs will provide valuable insights. While these indications may shed light on the SEC’s perspective, it is essential to note that they do not guarantee a definitive outcome.
Despite the resistance within the SEC, asset managers responsible for issuing spot Ethereum ETFs remain optimistic about approval. One issuer, whose identity is undisclosed, expressed confidence in the approval and successful launch of Bitcoin spot ETFs as a catalyst for the SEC to approve Ethereum spot ETFs. Another unnamed issuer cited the SEC’s earlier approval of Ethereum futures ETFs and BlackRock’s strong ETF approval record as reasons for their optimism. Additionally, mentions of Ethereum as a commodity by the CFTC and Ripple’s legal victory against the SEC are perceived as factors that could prevent the SEC from classifying cryptocurrencies as securities.
The public’s expectations regarding the approval of a spot Ethereum ETF are varied. While Bloomberg ETF analyst Eric Balchunas predicts a 70% chance of approval in May, JP Morgan executive Nikolaos Panigirtzoglou estimates a 50% chance. Polymarket odds currently suggest a 53% chance of approval. These diverging opinions reflect the uncertainty and complexity surrounding this regulatory decision.
The approval of a spot Ethereum ETF remains uncertain, as the SEC’s opposition and internal resistance create obstacles. Although there is optimism among asset managers, public expectations vary, highlighting the complexity of the issue. The SEC’s upcoming actions and engagements will provide crucial insights into its stance and the potential future of spot Ethereum ETF approvals. Until then, investors and industry participants will eagerly await further developments in this rapidly evolving landscape.