SEC Commissioner Hester Peirce Discusses Potential Ether ETF Approval Without Legal Battles
Summary:
SEC Commissioner Hester “Crypto Mom” Peirce suggests that a lawsuit won't be needed to approve spot Ether (ETH) ETF applications, referring back to the Grayscale court case that lead to Bitcoin ETF approvals in the U.S. However, Peirce acknowledges that the circumstances can vary significantly for each ETF application. Eric Balchunas, an analyst, estimates a 70% chance of a spot Ether ETF approval by May. Despite this optimism, other industry experts like Morgan Creek Capital's CEO view the chances as less likely, citing that the SEC still harbors skepticism towards the crypto industry.
The US Securities and Exchange Commission (SEC) will not need a legal battle to approve spot Ether (ETH) exchange-traded fund (ETF) applications, according to SEC Commissioner Hester “Crypto Mom” Peirce. Peirce made it clear in a January 24 interview with Coinage Media that the SEC shouldn’t have to be forced by the court to correct an irrational and inconsistent approach. This comment references the Grayscale court ruling, which was a precursor for the endorsement of spot Bitcoin ETFs in the United States. Peirce, nicknamed "Crypto Mom" because of her generally crypto-friendly viewpoints, is positive that a similar "precedent" as in the Grayscale case could be applicable but concedes that conditions and details contrast in each ETF application.
In each case, Peirce noted that meticulous preparation goes into making an exchange-traded product market-ready, among which included proper alignment of product descriptions and actual functionality. The court's previous criticism of their approach had made a significant impact.
Companies such as BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are contenders for the SEC's approval of a spot Ether ETF. Eric Balchunas, Senior Bloomberg ETF analyst, estimates the possibility of a spot Ether ETF approval at 70% by May.
Pending applications which the SEC will have to decide upon by respective due dates include VanEck (May 23), ARK 21Shares (May 24), Hashdex (May 30), Grayscale (June 18) and Invesco (July 5), as well as Fidelity and BlackRock by August 3 and 7. Despite Balchunas expressing confidence about Ether ETFs' approval likelihood, other notable voices in the industry such as Morgan Creek Capital's CEO Mark Yusko hold a more skeptical view, citing widespread SEC scepticism towards the crypto industry.
SEC Chair Gary Gensler has previously clarified, on January 11, that the approval of a spot Bitcoin ETF does not imply a wave of endorsements for other cryptocurrency ETFs, making a point that most crypto assets are investment contracts and subject to federal securities laws.
Published At
1/24/2024 4:35:10 AM
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