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When the SEC is silent, the ETF market takes note.
Several applications for Spot Ethereum ETFs are awaiting SEC approval. As the decision date approaches, uncertainty increases, with financial and crypto industry leaders saying: mixture of Skepticism and hope.
Recent report The Barron's article suggests that the situation continues to be frustrating for exchange-traded fund (ETF) issuers.
According to Barron's Magazine, Unlike the open dialogue that paved the way; spot The conversation between issuers and the SEC surrounding Bitcoin and Ethereum ETFs appears to be more one-sided. This lack of engagement portends a rocky road for Ethereum ETFs.
“Some ETF issuers have met with the SEC to discuss ETFs. Although it is a product, Discussions so far have been largely one-sided, with the agency not giving companies the critical feedback they need to finalize their products, according to people familiar with the matter.'' “At this point in the Bitcoin ETF process, the issuer was already involved.” in a solid state I am communicating with the agency staff. ”
Although we are skeptical, JPMorgan believes the question is not “if” but “when.”
Analyst Nikolaos Panigirtzoglou told The Block: spot Ethereum ETF approval may still occur, but it will likely take longer than expected.
According to him, ETF companies bring a legal suit against If the SEC does not approve these applications, we will notify the agency. “If there is no spot approval for Ethereum ETF in May, Then suppose we have: Legal proceedings will likely take place after May.” Said Panigirtzoglu.
Panigirtzoglou indicated that the case is likely to end up being opposed. SEC, and just like What happened At Grayscale, the SEC will eventually be “forced” to approve spot Ethereum ETFs.
VanEck, one of the spot Ethereum fund issuers, predicts that the ETF application will be rejected outright. VanEck CEO Jan Van Eck Said He said this in an interview with CNBC. VanEck and Ark Invest Applications “They're like the front of the line. May…probably You'll be rejected. ”
“The legal process is to go The regulator will give you a comment application, and it It's been happening for weeks before Bitcoin ETFs were introduced — and rightly so. Come on, pin It's falling As far as Ethereum is concerned.” Van Eck said.
“575 to 1”
For many fund managers, the SEC's silence is a nerve-wracking waiting game. However, BlackRock may be used to this process.
black rock is History of 575 ETF approvals 1 Reject. This high success rate creates a positive outlook for asset managers' Spot Ethereum ETF applications.
Recently, Ethereum have News has surfaced that the Ethereum Foundation is being investigated by “unspecified authorities,” drawing attention. It has been speculated that this scrutiny by the SEC is likely aimed at classifying Ethereum's native token, ETH, as a security.
Despite this speculation, BlackRock CEO Larry Fink said that a Spot Ethereum ETF is still a possibility even if ETH is classified as a security.
Jake Cherbinski, Valiant Fund's chief legal officer, indicated that BlackRock may file for exit. He noted that BlackRock's history of ETF approval success is due to a collaborative approach with the SEC, rather than just heavy-handed tactics.
“If the SEC asks BlackRock and other ETH ETF sponsors to exit (as is common practice), I'm sure they will do so,” Chervinski commented.
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