Anticipated Decision
Ethereum (ETH) has taken a 5% hit in the past day due to speculation that the SEC will reject upcoming spot Ethereum ETFs. US Bitcoin ETF issuers expect the SEC to deny their applications, based on recent meetings that were reportedly “one-sided.”
SEC’s Concerns
The SEC has not provided specific reasons for its expected rejection. However, applicants argue that the approval of spot Bitcoin ETFs and Ethereum futures-based ETFs in the past sets a precedent for spot ETH products.
Industry Impact
A rejection would be a setback for the crypto industry, which hoped that spot Bitcoin ETF approval would pave the way for similar products. It would also create uncertainty in the regulatory landscape.
Potential Legal Battles
Applicants expect the SEC to cite broader issues, such as the lack of statistical data on the ETH market, as reasons for rejection. Industry insiders speculate that this could lead to legal action, with courts potentially getting involved.
Market Impact
The anticipated rejection has already influenced the price of Ethereum, which is trading at $3,100. Over the past two weeks, ETH has experienced significant declines, highlighting its persistent downtrend.
