Ethereum
Chances of Ethereum Spot ETF approval decline later this month as analyst stresses SEC ‘considers asset security issue’
Ethereum Supporters might still be optimistic about spot approval of an ETF, but analysts tracking developments have increased the chances of a rejection by the SEC.
What happened: Analysis of a March file submitted by BlackRock Inc. to the SEC for its ETF application, financial lawyer Scott Johnson discovered “official” signals indicating that the regulator considers Ethereum to be a security.
The SEC, while delaying approval, also sought public comment on whether the applicant had properly filed its proposed ETF listing as a commodity.
Looks like the chances have increased that the SEC will reject Ethereum ETFs by claiming #Ethereum is a security. It’s not a guarantee that they will, but I think it almost guarantees that the SEC will at least consider it. (not revolutionary but I first saw it in public SEC filings) https://t.co/JK7M9G9Ttu
Johnson noted that this question is asked for all ETF filings and never for any. Bitcoin ETF spot/futures product.
“The obvious purpose is to potentially negate the fact that these one-time deposits are improperly deposited as commodity-based trust shares and do not qualify if they hold a security,” he added.
Responding to his findings, Bloomberg analyst James Seyffart increased the likelihood of a one-time rejection of the ETH ETF, believing that the regulator was considering the security issue of ETH.
Bloomberg ETF Analyst Eric Balchunas also entered the discussion, emphasizing: “Our chances of approval remain the same: slim to none. »
Why is this important: The SEC must decide VanEckSpot Ether ETF by May 23 – final deadline for the first batch of proposals allowing investors to bet on the spot price of the world’s second-largest cryptocurrency.
Ethereum status has become the main sticking point, with the SEC allegedly launched a secret operation to mark cryptocurrency as a security. A rejection could further worsen the situation of the asset, already hampered by a sluggish market in recent weeks.
Price action: At the time of writing, ETH was trading at $2,888.08, following a 2.16% decline over the past 24 hours, according to data from Benzinga Pro.
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