Updated: April 9, 2024, 5:45 PM EDT
Companies that have received approval from the Securities and Exchange Commission for spot Bitcoin exchange-traded funds say they have little confidence that the agency will approve their proposals for an Ethereum product. CNBC.
VanEck CEO Jan van Eck told CNBC in an interview published Tuesday that he expects the VanEck Ethereum ETF to be rejected in May. This is the first deadline for the SEC to decide whether the product will pass.
“The legal process is for regulators to comment on your application. This has been happening for weeks, even before the Bitcoin ETF came into existence. The pin is dropping right now as far as Ethereum is concerned,” he said. van Eck told CNBC.
large corporations, including fidelity and black stone, has been applying for a spot ether ETF over the past few months. Optimism gained strength after the SEC. Approved In January, 11 spot Bitcoin ETFs were launched, but this has since declined over the past few weeks.
CoinShares CEO Jean-Marie Mognetti also told CNBC that he was pessimistic about the company’s chances of receiving approval from the SEC. Mognetti said he does not expect any approval this year.
lowered expectations
Bloomberg ETF analyst Eric Balchunas lowered Last month, he estimated the likelihood of a spot Ethereum ETF being approved by May at around 70% to 30%. The cycle of the spot Ethereum ETF felt like the opposite of when the spot Bitcoin ETF was approved, Balchunas said. In the weeks leading up to the approval of the spot Bitcoin ETF, documents were frequently filed reflecting the changes the SEC was supposedly seeking.
Balchunas said his odds had not changed as of Monday.
“As we said, the SEC is required to comment on the filings (what he referred to as ‘critical feedback’), and they are providing none in person. Silence is violence.” said At X.
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About the author
Sarah is a reporter for The Block covering policy, regulation and legal events. Sarah was previously a reporter writing about securities regulation at CQ Legal, where she first began her reporting on cryptocurrencies. She Sarah has also written for The Bond Buyer and American Banker, among other financial publications. She graduated from the University of Missouri with a degree in Print and Digital Journalism. Sarah lives in Washington, DC and she is an avid coffee lover. You can follow her on Twitter @ForTheWynn.