Breaking: US SEC To Deny Spot Ethereum ETFs – Reuters

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As a seasoned investor in the crypto space, I’ve witnessed firsthand the anticipation and excitement surrounding the potential approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC). However, based on recent reports and sources familiar with the matter, it seems increasingly unlikely that the SEC will approve any time soon.

I’ve learned from reliable sources that the Securities and Exchange Commission (SEC) has decided against approving a long-awaited spot Ethereum exchange-traded fund (ETF). The SEC’s stance on approving such ETFs based on Ethereum (ETH) has remained unclear, as they continue to deliberate over the classification of Ethereum as a security. Consequently, their decision on the proposed spot Ethereum ETFs from various issuers has been postponed indefinitely.

US SEC Expects to Refuse Spot Ether ETF Approval

Based on reports from Reuters on April 25th, it is expected that applicants for Ether spot ETFs and related firms will face rejections from the U.S. SEC next month following unfavorable encounters with the securities regulatory body in the past week.

BlackRock, Grayscale, VanEck, Ark Invest and other issuers have filed with the SEC to approve and list ETF tracking the spot prices of Ether (ETH), similar to spot Bitcoin ETFs. VanEck and Ark Invest are first in line for the SEC’s decision on May 23 and May 24, respectively.

Based on information from informed sources, the Securities and Exchange Commission (SEC) and its team have displayed a lack of enthusiasm towards the proposed spot Ether Exchange Traded Fund (ETF), as suggested by four individuals involved in the talks. The conversations reportedly favored the SEC’s perspective.

Based on my observation and careful monitoring of the situation, Todd Rosenblith, the ETF analysis head at VettaFi, has indicated a higher probability that approval will be deferred until late in 2024 or even beyond. The regulatory landscape remains unclear.

The Securities and Exchange Commission (SEC) has shown a comparable resistance towards approving a spot Ether Exchange-Traded Fund (ETF), mirroring its stance on spot Bitcoin ETFs for over a decade. However, the SEC’s hand was forced to reconsider this decision following Grayscale Investments’ successful lawsuit against the regulatory body. Despite this approval, Gary Gensler and his team at the SEC remained unenthusiastic about the prospect of a spot Bitcoin ETF.

As an observer, I’ve noticed that many market participants hold a strong belief that the approval of a spot Bitcoin ETF is a significant step towards wider cryptocurrency adoption. The anticipation of similar approvals for other cryptocurrencies, such as Spot XRP and SOL, further fuels this optimism. However, the denial of an ETF application will undoubtedly present a setback in their eyes, potentially causing temporary uncertainty or even reluctance within the crypto market.

I’ve noticed that the Securities and Exchange Commission (SEC) has revealed details about just one encounter regarding a Bitcoin spot exchange-traded fund (ETF). This gathering took place in March. The SEC held this meeting with Coinbase to discuss Grayscale’s petition for transforming its Ethereum Trust into a spot Ethereum ETF.

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2024-04-25 14:21