SEC’s Silence Raises Concerns
Bloomberg’s ETF expert, Eric Balchunas, predicts a mere 25% chance of a spot Ethereum exchange-traded fund (ETF) being approved by the SEC. He believes the SEC’s lack of engagement suggests a deliberate non-approval stance.
Grayscale’s Optimistic Perspective
Grayscale’s Chief Legal Officer, Craig Salm, offers a different view. He points out that many operational details relevant to an Ethereum spot ETF were already addressed during the approval process for the spot Bitcoin ETF. This, he argues, could reduce the need for further engagement.
Market Performance Amid Uncertainty
Despite the regulatory uncertainty, Ethereum’s market performance has been strong. It has seen a 10% increase in value over the past week, trading above $3,500.
SEC’s Cautious Approach
The SEC’s recent actions, including subpoenas to crypto firms, indicate a cautious approach towards Ethereum and its classification. This, coupled with the SEC’s historical hesitation towards cryptocurrency ETFs, casts doubt on the immediate future of a spot ETH ETF.
