According to a new report, the United States Securities and Exchange Commission (SEC) is expected to reject spot Ether exchange-traded funds (ETFs) in May. Insiders have revealed that U.S. issuers and other firms anticipate this outcome after participating in meetings with the SEC in recent weeks. The sources, who have chosen to remain anonymous, stated that these discussions have been one-sided, with the agency staff failing to address important details about the proposed products. The lack of productive talks regarding Ether ETFs is in stark contrast to the extensive discussions that occurred between issuers and the SEC in January, shortly before spot Bitcoin ETFs were approved after more than a decade of rejections. Grayscale Investments’ court victory against the SEC in August 2023 played a significant role in changing the agency’s stance.
Market analysts concur that the SEC is likely to delay the approval of Ether ETFs even further. Todd Rosenbluth, a data analyst at VettaFi ETF, suggested that approval could be postponed until later in 2024, or possibly longer, due to the regulatory uncertainty that still plagues the industry. Eric Balchunas, an ETF analyst at Bloomberg, previously estimated the chances of the SEC approving a spot Ether ETF in May to be around 35%. Balchunas claimed to have reliable information indicating that the SEC may intentionally be avoiding communication with prospective fund issuers. Another factor that could influence the decision-making process is SEC Chair Gary Gensler’s position on Ether, as he has refrained from providing clarity on whether it should be classified as a security.
While the U.S. appears to be facing another delay, several other global jurisdictions are making progress in their plans to launch ETF trading. On April 24, the Securities and Futures Commission (SFC) in Hong Kong officially approved a series of spot Bitcoin and Ether ETFs. These include three BTC and three ETH ETFs by China Asset Management, Harvest Global Investments, and Bosera. It is anticipated that trading for Hong Kong’s crypto ETFs will commence on April 30.
It’s such a shame that Grayscale Investments’ victory didn’t have a lasting impact on the SEC’s stance.
The SEC is really holding back innovation with their lackluster approach to crypto ETFs.
It’s frustrating to see other jurisdictions moving forward while the U.S. falls behind. Come on, SEC!
The SEC’s inaction is hindering progress in the crypto industry. It’s frustrating to watch.
This is so frustrating! Why is the SEC rejecting Ether ETFs?
While the US faces delays, it’s great to see Hong Kong making progress with the approval of Bitcoin and Ether ETFs. Other jurisdictions are moving forward, and the US shouldn’t fall behind.
This is disappointing news. 😞 I was really hoping for the approval of spot Ether ETFs in the US. 🇺🇸 The SEC seems to be dragging their feet. ⏳
This is just another example of the SEC’s inconsistency and lack of clarity. It’s really disappointing. 😔
It’s frustrating that the SEC staff isn’t addressing important details about the proposed Ether ETFs. They should be more transparent and engaging in productive discussions.
I don’t understand why the SEC keeps rejecting ETFs. It’s time for them to adapt to the changing market.
Ugh, the SEC’s lack of transparency is infuriating. They need to address the concerns properly! 🙄
I had high hopes for Ether ETFs, but it seems like the SEC is determined to squash them.