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SEC Likely to Reject Spot Ethereum ETF Applications Next Month

SEC Likely to Reject Spot Ethereum ETF Applications Next Month

According to a recent report, it's probable that the United States Securities and Exchange Commission (SEC) will reject spot Ethereum ETF applications in May.

As per Reuters, after recent discussions with the regulator, ETF issuers and other entities anticipate the SEC’s negative response next month.

Reuters’ sources revealed that recent conversations between issuers and the SEC lacked substantial engagement from the agency’s side, with no detailed discussions about the proposed products.

Comparisons were drawn between the current situation surrounding ETH ETFs and the extensive discussions held in January before the SEC’s approval of spot Bitcoin ETFs. Notably, the SEC had rejected spot BTC ETF filings for more than a decade before changing its stance following a court victory by Grayscale Investments in August 2023.

Analysts widely believe that the SEC will likely prolong the approval process for Ethereum ETFs, potentially delaying it until later in 2024 or beyond.

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In March, Bloomberg ETF analyst Eric Balchunas estimated the likelihood of the SEC approving a spot ETH ETF in May at around 35%. He also hinted at insider information suggesting that the SEC might intentionally avoid engaging with prospective fund issuers.

Balchunas noted that SEC Chair Gary Gensler’s stance on ETH could influence the decision-making process, particularly as Gensler has refrained from clarifying whether Ethereum qualifies as a security.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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