Ethereum Spot ETF Applications - Where Do They Stand?

Table of Contents

• SEC Softening Toward ETFs?
• Can Blackrock Convince SEC Again?
• Crypto Mom: Won’t Need Lawsuit To Approve

Now that the U.S. Securities and Exchange Commission (SEC) has approved spot Bitcoin ETFs, will it also approve the Ethereum ETF applications? 

 

SEC Softening Toward ETFs? 

 

Fox reporter Eleanor Terrett has claimed that the fate of Ethereum ETF applications is still up in the air as industry experts have offered contradictory opinions on the matter. BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are among the spot Ether ETF applicants vying for approval, and the SEC needs to decide in the next few months. 

The securities watchdog recently (January 10, 2024) approved the first round of spot Bitcoin applications, which boosted the confidence of some crypto issuers who believe that the SEC is softening its stance on cryptocurrencies. 

In fact, some parties who claim to have a source within the SEC seem quite confident about the approval of spot Ether ETFs. 

Elaborating her findings in an X post, Terrett wrote, 

“One BTC Spot ETF issuer with an ETH Spot ETF application says they’re confident the approval and smooth launch of the Bitcoin spots will compel the SEC to approve ETH spot ETFs.” 

 

Can Blackrock Convince SEC Again? 

 

She also reported that another school of thought believes the SEC to be strictly opposed to allowing an Ethereum ETF. According to this source, the regulatory body has shot down the possibility due to “some internal resistance” to the idea. 

Yet another source believes that BlackRock’s track record in gaining approval from the SEC would ensure the launch of spot Ether ETFs by the end of summer 2024. 

On the topic of this source, Terrett wrote, 

“When I asked whether Gensler’s opaque position on the status of Ethereum as a potential security would come into play, they said the fact that the CFTC believes ETH is a commodity coupled with Ripple’s partial court victory with $XRP not being a security during secondary market transactions will make it an uphill battle for Gensler to take the position that most digital assets are securities going forward.” 

 

Crypto Mom: Won’t Need Lawsuit To Approve

 

She also talked about SEC Commissioner Hester Pierce, who is also referred to as ‘Crypto Mom’ by the community for a being a sympathetic voice toward crypto on the regulatory agency. Pierce has recently addressed the matter of the Ethereum ETFs and claimed that unlike in the case of the Bitcoin ETFs, the SEC would not need a lawsuit to convince them to approve the Ethereum ETFs. 

She is referring, of course, to the Grayscale court ruling, which many believe forced the SEC’s hand. 

She said, 

“We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right…That’s not how we’re going to do our approvals.”

It is to be noted that the SEC has explicitly clarified that the approval of the spot Bitcoin ETFs does not mean that applications associated with other cryptocurrencies would be approved as well. 

 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.