The fate of the Ethereum (ETH) spot exchange-traded fund (ETF) approval remains a hot topic, with conflicting opinions from various parties. FoxBusiness journalist Eleanor Terrett recently provided insights into the divergent views surrounding the potential approval of an Ethereum spot ETF. Terrett highlighted the contrasting perspectives from ETF issuers, investment management firms, and sources close to the U.S. Securities and Exchange Commission.
According to Terrett’s reporting, one issuer, who already has a Bitcoin (BTC) spot ETF in the pipeline, expressed confidence that the approval and successful launch of the BTC spot ETF would exert pressure on the SEC to greenlight the ETH counterpart. This optimistic outlook hinges on the belief that a positive decision for BTC would set a precedent for ETH.
On the flip side, another source painted a less favorable picture, suggesting that the atmosphere within the SEC is currently leaning towards a “hard no.” The insider mentioned the presence of “some internal resistance” within the commission, indicating a potential hurdle for ETH’s approval.
Ethereum ETF Launch Possible by Summer
However, a third perspective provided a glimmer of hope for ETH enthusiasts. This source pointed to the recent approval of Ethereum futures ETFs and cited BlackRock’s track record of successfully navigating the regulatory landscape for ETF approvals. According to this viewpoint, these factors contribute to the expectation that ETH spot ETFs could see the light of day by the end of the summer.
When questioned about SEC Chair Gary Gensler’s stance on Ethereum’s status as a potential security, the source downplayed concerns. They argued that the Commodity Futures Trading Commission recognizes ETH as a commodity, and recent legal developments, such as Ripple’s partial victory with XRP not being deemed a security during secondary market transactions, could make it challenging for Gensler to classify most digital assets as securities.
SEC Commissioner Hester Peirce weighed in on the matter, emphasizing the importance of avoiding delays in the approval process for ETH ETFs. She highlighted the need for a “regular way” consideration, similar to the approach taken with comparable products.
However, Terrett emphasized that the decision ultimately rests in the hands of the SEC. Clues about the regulatory stance on ETH ETFs are expected to emerge in the coming months as SEC staff delve into the S-1 filings, mirroring the scrutiny applied to BTC spot ETFs.
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