Analysts Reassess Likelihood of SEC Approval for Spot Ether ETF amid New Information
Summary:
Two Bloomberg ETF analysts, James Seyffart and Eric Balchunas, are reassessing the potential for the U.S Securities and Exchange Commission (SEC) to approve a spot Ether ETF due to recent information that suggests a possible reversal of the expected denial. They have changed their prediction of the chances from 25% to 75%. The SEC will have to decide on the approval of VanEck's application, being the first of many Ether ETFs under consideration. The outcomes of the decision could have wider political implications.
Two ETF analysts are reassessing the likelihood of the U.S. Securities and Exchange Commission (SEC) approving a spot Ether (ETH) exchange-traded fund, after receiving indications that the financial watchdog might reverse its expected decision. On May 20, Bloomberg ETF experts James Seyffart and Eric Balchunas suggested that the SEC was possibly reconsidering its anticipanted rejection of spot Ether ETFs. Prior statements from SEC Chairman Gary Gensler, SEC filings, and reports of inquiries all hinted towards a possible rejection of spot Ether ETF proposals.
Nevertheless, Seyffart and Balchunas revised their prediction of a spot Ether ETF being approved from a 25% chance to 75%. Seyffart hinted the decision could be influenced by political factors.
"While Ether enthusiasts may never let me live it down if this turns out to be untrue, this is what we are hearing from several different sources," said Seyffart. "If we're correct, we should see several filings in the coming days."
The task of deciding whether VanEck's spot Ether ETF gets the nod has been given to the SEC, with the decision due by May 23. The SEC has postponed VanEck's submission for as long as permitted under regulation, making it the first in line of several spot Ether ETFs queued up for consideration. ETF proposals by ARK 21Shares, Hashdex, Invesco Galaxy, BlackRock, and Fidelity are also awaiting a SEC decision.
In an interview on April 9, VanEck CEO Jan van Eck expressed skepticism about his firm's ETF application being greenlit in May. On May 7, asset manager Grayscale stepped back from its application for an Ether futures ETF, and CEO Michael Sonnenshein revealed on May 20 that he would be stepping down.
Over the past two weeks, U.S. lawmakers have voted to overrule an SEC regulation that impacts the way the watchdog treats banks dealing with firms holding assets. As of the time of the report, it was ambiguous whether President Joe Biden would veto the legislative resolution or approve it.
Published At
5/20/2024 11:09:40 PM
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