Issuers of spot bitcoin exchange-traded funds are skeptical about the near-term prospects of the U.S. Securities and Exchange Commission approving such a product for cryptocurrency ether. The SEC has a deadline in late May to make a decision on an ether ETF, following a delay in March on the original deadline. Companies like BlackRock, Fidelity, and VanEck, which have already issued spot bitcoin ETFs this year, are waiting for approval for an ether product. Some issuers are not confident that the SEC will approve the ether applications.
VanEck CEO Jan Van Eck expressed doubts about the approval of the ether ETF applications, stating that they were likely to be rejected along with Ark Invest CEO Cathy Wood in May. The SEC has been providing feedback on the applications, and the outlook for Ethereum is uncertain. The crypto community has been eagerly anticipating an ether ETF ever since the approval of spot bitcoin ETFs in January, but the SEC’s stance on crypto assets as investment contracts raises concerns.
CoinShares CEO Jean-Marie Mognetti also expressed skepticism about gaining approval for an ether ETF in the near future, suggesting that it may not happen before the end of the year. He highlighted the challenges of gaining SEC approval for proof of stake, a blockchain protocol specific to Ethereum. The SEC has not raised concerns about proof of work, the protocol underlying bitcoin.
Issuers of spot bitcoin exchange-traded funds are uncertain about the likelihood of the U.S. Securities and Exchange Commission approving a similar product for the cryptocurrency ether. The SEC has a deadline in late May to review an application for an ether ETF, but some issuers, including BlackRock, Fidelity, and VanEck, are not confident that it will be approved. VanEck CEO Jan Van Eck expressed skepticism, suggesting that rejection may be possible. The SEC has previously emphasized that most crypto assets are subject to securities laws, complicating the approval process for an ether ETF. CoinShares CEO Jean-Marie Mognetti also expressed doubts about obtaining approval in the short term, indicating that it may not happen before the end of the year due to potential challenges with proof of stake technology specific to blockchain.
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