Spot Ether ETFs: Mixed Views on Approval Chances Ahead of SEC Decision

Spot Ether ETFs: Mixed Views on Approval Chances Ahead of SEC Decision

EconomyBlockchain

By Jakub Lazurek

30 Mar 2024

2 min read

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Differing opinions emerge on the approval of spot ether ETFs as the SEC deadline nears

Leaders from companies planning to launch a spot ether ETF hold different views on its approval. Ophelia Snyder of 21Shares is more optimistic than Ark Invest's CEO, Cathie Wood. Wood recently voiced concerns on a podcast, suggesting the likelihood of their ether ETF's approval by May is decreasing.

The SEC is expected to decide on ether ETF applications by May 23. This follows a 240-day review period.

Ark Invest and 21Shares previously joined forces to introduce a bitcoin ETF, now with $3 billion in assets, after a legal win by Grayscale against the SEC, which highlighted inconsistencies in the SEC's approach to bitcoin ETFs.

Despite the SEC's nod to ether futures ETFs, Snyder believes in a positive outcome for spot ether ETFs, citing their similarity to bitcoin ETF applications. She points out that both share the same structure and disclosures, simplifying the SEC's review process.

Wood pinpointed the proposals' staking language as a potential issue for the SEC.

Staking, a process crucial to the Ethereum network, is mentioned in several applications, indicating the possibility of staking part of the ETF's assets. Bitwise's recent application, however, skips this detail.

Analysts suggest staking could complicate ether's classification, potentially aligning it with securities, which may deter the SEC. However, BlackRock's CEO, Larry Fink, believes the classification won't majorly affect the ether ETF's approval chances, indicating a possible path forward even if ether is deemed a security.

This summary highlights the ongoing debates and expectations surrounding

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