According to a CNBC report, issuers of spot Bitcoin exchange-traded funds (ETFs) have expressed skepticism that the U.S. Securities and Exchange Commission (SEC) will approve a similar spot Ethereum ETF.
Market participants, including asset managers BlackRock, Fidelity and VanEck, are eagerly awaiting Ethereum approval. ETF productsHowever, some issuers are uncertain about whether the SEC will approve them.
Uncertainty about Ethereum ETF
that much report The issue of Ethereum ETFs has become more complicated, with SEC Chairman Gary Gensler highlighting the extent to which cryptocurrency assets are subject to federal securities laws. Gensler argued that most cryptocurrency assets are investment contracts, consistent with the SEC’s view.
Interestingly, VanEck CEO Jan Van Eck predicts the following results: exclusion It said regulators have been providing comments on the application for several weeks.
Van Eck believes the SEC’s decision-making process is similar to that of the Bitcoin ETF, which undergoes lengthy review and ultimately leads to approval. However, the outlook for the Ethereum ETF remains uncertain. CEO VanEck added:
We were the first to file a filing for Ethereum in the U.S., and we and (Ark Invest CEO) Cathy Wood expect to be the first to file in May. It will probably be rejected.
Jean-Marie Mognetti, CEO of CoinShares, shared this pessimism, saying he does not expect approval for proof-of-stake protocols, especially those related to Ethereum, to be granted anytime soon.
Will Proof-of-Stake Protocols Complicate SEC Decisions?
The SEC’s approval of Proof of Work (PoW), the protocol underlying Bitcoin, did not raise securities law concerns. considered a product U.S. regulator led by Gensler.
However, Proof-of-Stake (PoS), the core of Ethereum, poses challenges to the approval of Ethereum ETFs, as we have seen consistently with Bitcoin. traditional financial institutions Increase adoption and make these products available to more investors in the United States.
While Bitcoin relies on volunteer miners to verify transactions and create new tokens, Ethereum’s Proof-of-Stake Protocol It is based on participants staking existing tokens to secure the network.
The SEC’s reservations about the protocol are another obstacle to approval of an Ethereum ETF, with CoinShare’s CEO adding, “It doesn’t look like anything will be approved this year.”
Ultimately, while market participants eagerly await the SEC’s decision on whether to approve or disapprove the Ethereum ETF, spot Bitcoin ETF issuers prepare for the outcome and navigate the regulatory environment to offer investment products related to Ethereum. I’m doing it.
It is worth noting that the deadline for the SEC to complete its review of Ethereum ETF applications is May. This comes after the original March decision deadline had already been postponed.
The price of ETH is $3,518, down 2.5% in the last 24 hours. This decline extends the downward trend observed over the past 30 days, bringing the cumulative decline to nearly 10%.
Featured image from Shutterstock, chart from TradingView.com