Ethereum
Chances of Ethereum Spot ETF Approval ‘Slim to None,’ Says Bloomberg Analyst
Chances of Ethereum Spot ETF Approval ‘Slim to None,’ Says Bloomberg Analyst
The crypto world eagerly awaits the crucial decision by the United States Securities and Exchange Commission (SEC) on the approval of an Ethereum spot ETF, scheduled for May 31. As the deadline approached, several factors came into play, making the outcome of the decision uncertain.
At the center of the SEC’s deliberations is a crucial question: whether Ethereum should be classified as a security or a commodity. The move could have a significant impact on the fate of spot ETF applications filed by various companies, including VanEck, ARK 21Shares, Hashdex, Invesco Galaxy, BlackRock and Fidelity.
In a recent development, financial attorney Scott Johnsson highlighted a concerning detail from a March filing from BlackRock regarding its Ether ETF spot application. The filing requested public comment on whether the investment vehicle could be listed as a commodity, suggesting that the SEC could explore the possibility of classifying Ether (ETH) as a security.
“The obvious purpose is potentially to deny on the basis that these cash deposits are improperly deposited as commodity trust shares and do not qualify if they hold a security,” Johnsson said in a post .
Mixed expectations and market reactions
Eric Balchunas, senior ETF analyst at Bloomberg, expressed skepticism about the likelihood of approval, reflecting the general sentiment that the regulator may maintain a cautious stance toward cryptocurrency-related products.