Vladislav Sopov
Jake Cherbinski, chief legal officer of VC fund Variant and top blockchain lawyer, explains why ETH ETF is unlikely to be approved this year
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US watchdog agency SEC received too much “political backlash” after approving a Bitcoin Spot ETF in the US, a veteran legal expert said. As such, the most anticipated event for Ethereum (ETH) investors may be months away.
'Political priorities' could prevent ETH ETF greenlighting in 2024
Valeant's Jake Cherbinski said the US SEC is unlikely to approve an exchange-traded fund based on Spot Ether (ETH) in 2024. This sad outcome was caused by political reasons that put pressure on SEC leadership.
Even though a U.S. court essentially forced the SEC to approve the launch of a Bitcoin Spot ETF in January 2023, the regulator faced strong “political headwinds,” Chervinsky said. added.
In this context, the approval of the BTC ETF is the result of collaboration between the SEC and the ETF filing, especially with BlackRock.
As such, they will do everything in their power to avoid conflict with the SEC and will likely withdraw all ETH ETF applications if asked to do so by the SEC.
The situation becomes even more hostile for the Ether ETF given the fact that “animal spirits” are currently completely dominating the market.
The “When, not If” approach still works
Since the approval of the Bitcoin ETF, the price of Ethereum (ETH), the second largest cryptocurrency, has increased by more than 30%. Last week's high was over $3,500.
However, Cherbinski is confident that sooner or later the ETH ETF will be approved.
“Not if, but when” seems like a very reasonable perspective to me
As previously reported on U.Today, Bloomberg's James Seifert announced that he does not expect the Ether ETF to launch in March 2024.
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Vladislav Sopov
