Ethereum spot ETF faces skepticism as SEC decision approaches

There are several applications for Ethereum ETFs awaiting SEC approval. As the decision date approaches, uncertainty is growing, with financial and cryptocurrency leaders expressing their sentiments a mix of Doubt and hope.

newly a report From Barron's It points to an ongoing and frustrating situation for exchange-traded fund (ETF) issuers.

According to Baron, In contrast to the open dialogue that paved the way for it spot Bitcoin ETFs The conversation between issuers and the SEC about Ethereum ETFs appears to be more one-sided. This lack of participation portends a difficult road ahead for Ethereum ETFs.

“Some ETF issuers have met with the SEC to talk about their plans 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. “At this stage of the Bitcoin ETF process, issuers are already engaged In strong Back and forth with agency staff.

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

Analyst Nikolaos Panigirzoglou told The Block spot Ethereum ETF approval may still occur, but it may take longer than expected.

According to him, ETF companies may File legal claims against Agency if the SEC does not approve these filings. “If there is no immediate ETF approval in May, Then we assume there will be The litigation process will begin after May.” He said Panigirzoglu.

Panigirzoglou noted that the lawsuit will likely end in opposition to the law SEC, and only Likes What happened with Grayscale, the SEC will eventually have to approve Ethereum ETFs.

VanEck, one of the issuers of Ethereum spot funds, expects a complete rejection of ETF deposits. VanEck CEO Jan Van Eck He said In an interview with CNBC that VanEck and Ark Invest applications “She is the top type in class May…probably is rejected.”

“The legal process method He goes Is that the regulators will give you feedback on your application, and that This happened weeks and weeks before Bitcoin ETFs came along – and it's true Now, pins Go down As far as Ethereum is concerned, Van Eyck said.

“576 to one”

For many fund managers, the SEC's lack of involvement represents an unnerving waiting game. However, BlackRock may be more accustomed to this process.

BlackRock has History of 576 ETF approvals with 1 rejection. This high success rate creates a positive outlook for the asset manager's instant Ethereum ETF application.

Recently, Ethereum he have It gained attention after news emerged that the Ethereum Foundation was under investigation by an undisclosed government authority. Speculation suggests that this audit, possibly from the SEC, is intended to classify Ethereum's native token, ETH, as a security.

Despite this speculation, BlackRock CEO Larry Fink said that an Ethereum spot ETF may still be possible even if ETH is classified as a security.

Jake Chervinsky, chief legal officer at Variant Fund, suggested BlackRock's potential request to withdraw. He noted that BlackRock's history of successful ETF approvals is attributable to a collaborative approach with the SEC, not just aggressive tactics.

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