Fox News Reporter Reveals Differing Views on SEC’s Approval of Spot Ethereum ETFs

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Fox News reporter Eleanor Terrett has revealed differing opinions among stakeholders regarding the potential approval of a spot Ethereum Exchange-Traded Fund (ETF).

While certain issuers are optimistic, suggesting that the approval of spot Bitcoin ETFs might compel the SEC to greenlight Ethereum-based products, possibly in the late summer, others argue that the agency’s stance on ETH is leaning towards rejection due to substantial internal resistance within the SEC.

Conflicting Views on SEC’s Approval

According to Terrett, one issuer who has already obtained approval for a spot Bitcoin ETF expresses confidence that the successful launch will influence the SEC to greenlight Ethereum ETFs.

However, another source paints a more pessimistic picture, stating that there is a “hard no” at the SEC, with internal resistance to the idea.

Reporting on the timeline for a potential $ETH ETF approval has turned up a plethora of different takes from ETF issuers, investment management firms and sources close to the @SECGov.

One $BTC Spot ETF issuer with an ETH Spot ETF application says they’re confident the…

— Eleanor Terrett (@EleanorTerrett) January 23, 2024

A third source speculates that the approval of Ethereum futures ETFs and BlackRock’s track record in getting ETFs approved could pave the way for spot ETH ETFs to launch by the end of the summer.

When questioned about SEC Chair Gary Gensler’s stance on Ethereum as a potential security, the source suggests that given the Commodity Futures Trading Commission’s (CFTC) classification of Ethereum as a commodity and recent legal developments with Ripple’s XRP, it may be challenging for Gensler to assert that most digital assets are securities.

SEC Commissioner Hester Peirce emphasized the importance of avoiding delays in the approval process for spot Ethereum ETFs.

She stated, “We need to be applying ‘regular way’ consideration to these products, the same kind of consideration we apply to similar products.”

JP Morgan Analysts Skeptical

Meanwhile, JP Morgan analysts led by Managing Director Nikolaos Panigirtzoglou expressed reservations through a note to clients sent on Jan.18 about the likelihood of SEC approval for spot Ethereum ETFs.

Citing regulatory and judicial concerns, the analysts predicted a less than 50% chance of approval. They also noted skepticism about the SEC classifying Ethereum as a commodity as early as May.

As the SEC continues to deliberate on spot Ethereum ETFs, market participants eagerly await clues from the regulatory body in the coming months.

According to Terrett, the SEC’s handling of S-1 filings will likely provide insights into the agency’s stance. The ball remains firmly in the SEC’s court, and the crypto community keenly watches how things unfold.

The post Fox News Reporter Reveals Differing Views on SEC’s Approval of Spot Ethereum ETFs appeared first on CryptoPotato.

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