Analysts such as Bloomberg’s Eric Balchunas believe that there is a 70% chance that the Ethereum spot ETF will be approved before May.
Source: bitcoinist
Compiled by: Blockchain Knight
SEC (U.S. Securities and Exchange Commission) Commissioner Hester Peirce, who is often called the "Mother of Crypto Assets" for her positive stance on crypto assets, recently shared her insights on Ethereum in an interview with Coinage Media.
Peirce said the SEC may not need litigation to guide its decision to approve an Ethereum spot ETF .
Peirce mentioned the court ruling on Grayscale, which was instrumental in the SEC’s approval of a spot BTC ETF. The SEC should not wait for court intervention to correct its approach, acknowledging that the regulator acted "arbitrarily and capriciously."
The SEC commissioner stated in the interview: "We should not let the courts tell us that our approach is arbitrary and capricious so that we can do it right. There is a lot of work that needs to be done to prepare exchange-traded products for listing, including Make sure the information disclosed is consistent with how the product actually works."
She also mentioned, " To learn from the court that the approach we took was wrong, I think this lesson will definitely be taken to heart ."
This admission signals the potential openness to apply the same precedent to future Ethereum ETF applications, although recognizing that the specific facts and circumstances of each application may vary significantly, one commissioner cannot sway the entire agency’s decision.
The SEC recently extended the decision-making deadline for Fidelity’s proposed Ethereum spot ETF . On January 18, 2024, the SEC announced a 45-day extension to review the proposal more thoroughly.
According to the SEC, the delay ensures "sufficient time to consider the proposed rule changes and the issues raised therein."
It is worth noting that the Crypto asset community remains cautiously optimistic about this .
Analysts such as Bloomberg’s Eric Balchunas believe that there is a 70% chance that an Ethereum spot ETF will be approved by May , especially considering that “multiple applications are pending review.”
So far, several well-known financial firms including BlackRock, ARK 21Shares, VanEck, Invesco Galaxy, Fidelity, Hashdex, and Grayscale are vying for SEC approval of their respective Ethereum spot ETF proposals.
Digital asset lawyer Joe Carlasare used CME (Chicago Mercantile Exchange)'s existing Ethereum futures trading and the high correlation between Ethereum futures and the spot market as examples to demonstrate his confidence that the Ethereum spot ETF will be approved within the year.
Carlasare noted that SEC approval of a spot BTC ETF is contingent on the existence of a regulated futures market, arguing that similar rationales should apply to Ethereum .
