April 25, 2024
SEC may deny spot Ether ETFs in May
Latest Cryptocurrency News

SEC May Deny Spot Ether ETFs Amid Global Progress

In a recent report by Reuters on April 24, it was revealed that the United States Securities and Exchange Commission (SEC) is likely to deny spot Ether exchange-traded funds (ETFs) next month. This decision comes following meetings between U.S. issuers, other firms, and the regulator over the past few weeks.

One-Sided Meetings Raise Concerns

During these meetings, which involved four anonymous sources closely involved in the discussions, concerns were raised regarding the one-sided nature of the talks. Participants noted that SEC staff did not engage in substantive discussions regarding the proposed Ether ETF products.

Comparisons with Bitcoin ETF Approvals

Interestingly, the sources pointed out a contrast between the recent talks on Ether ETFs and the detailed discussions held before the approval of spot Bitcoin ETFs in January. This comparison highlights a potential shift in regulatory dynamics within the SEC.

Analysts predict further delays.

Experts such as VettaFi ETF data analyst Todd Rosenbluth and Bloomberg ETF analyst Eric Balchunas have voiced expectations of delays in Ether ETF approvals. Rosenbluth suggested a potential delay until later in 2024 or beyond, citing ongoing regulatory uncertainties. Balchunas, who previously estimated a 35% chance of SEC approval in May, hinted at intentional silence from the SEC and noted SEC Chair Gary Gensler’s ambiguous stance on Ether’s security classification as a factor affecting the decision process.

Global Approvals Amidst US Delays

While the SEC appears poised for a delay, global markets are moving forward with ETF trading plans. On April 24, Hong Kong’s Securities and Futures Commission (SFC) approved the first batch of spot Bitcoin and Ether ETFs, signaling progress outside the U.S. market. These developments suggest a complex and evolving landscape for crypto ETFs globally.

Conclusion

As the SEC leans towards denying spot Ether ETFs in May, citing ongoing regulatory uncertainties and limited substantive discussions, global markets like Hong Kong are taking proactive steps towards crypto ETF approvals and trading. The decision’s impact on market sentiments and regulatory approaches remains a focal point for stakeholders globally, highlighting the intricate interplay between innovation, regulation, and market dynamics in the crypto investment space.

Image by pixabay

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