TL;DR
- The community awaits responses regarding the approval of Ethereum ETFs in the US.
- Jan van Eck, CEO of VanEck, expressed skepticism about a positive outcome from the SEC in May.
- The lack of clarity and feedback from the SEC reinforces pessimism about any approval possibility.
The community awaits a response to the approval of Ethereum ETFs (ETH) in the United States. Jan van Eck, CEO of VanEck, has expressed skepticism about the likelihood of the SEC approving the financial products in May. VanEck, along with ARK Invest, were the first to file applications for spot Ether ETFs in the United States. The final decision scheduled for May 23 and 24. However, the lack of feedback from the SEC on the pending applications does not bode well for their approval.
This lack of clarity has led several experts, including CoinShares CEO Jean-Marie Mognetti, to take pessimistic positions on the prospects for approval of Ether ETFs in the short term. Mognetti does not see any ETFs being approved for the remainder of the year.
Enjoyed this quick interview! Touched on a wide range of topics including bitcoin ETF demand, near-term prospects of ether ETFs, Solana, and stablecoins…
It’s interesting being in Europe—so much happening here but they’re very focused on the US. https://t.co/OFY2Pp9UcX
— Jan van Eck (@JanvanEck3) April 9, 2024
The SEC may have difficulty approving investment products based on the proof of stake (PoS) mechanism, a specific protocol of Ethereum. Unlike Bitcoin, which is based on proof of work (PoW), the SEC has not raised legal issues regarding PoW from a securities law perspective.
Ethereum Remains Under the Yoke of SEC Regulatory Laws
As expected, the SEC’s review process has been criticized for its lack of communication with applicants and the typical lack of clarity, which cannot lead to anything other than rejection. Eric Balchunas, senior ETF analyst at Bloomberg, has pointed out the SEC’s “deafness” to fund issuers as a key factor reducing approval chances in May.
SEC Chairman Gary Gensler has stated that most crypto assets are investment contracts and therefore subject to federal securities laws. This regulatory stance complicates the chances of approval for Ethereum ETFs in the short term.
For now, uncertainty will persist. However, with so many negative comments from experts and a total lack of clarity from the SEC, fueling concern about the fate of the ETFs, the regulator’s denial will not come as a surprise.
