SEC May Approve Spot Ether ETF, Say Analysts

Analysts predict a 75% chance of the SEC approving a spot Ether ETF, reversing previous expectations of denial.
SEC May Approve Spot Ether ETF, Say Analysts

Key Takeaways

  • SEC analysts predict a 75% chance of approving a spot Ether ETF.
  • VanEck's spot Ether ETF decision is due by May 23.
  • U.S. lawmakers recently voted on an SEC rule affecting banks handling asset companies.

Bloomberg ETF analysts James Seyffart and Eric Balchunas have significantly raised their predictions for the SEC approving a spot Ether exchange-traded fund (ETF) from 25% to 75%.

This change comes after hearing reports suggesting the financial regulator might reverse its expected denial of such ETFs.

In their May 20 X posts, Seyffart and Balchunas indicated that the SEC could be shifting its stance on spot Ether ETFs.

Earlier filings

Earlier filings, statements from SEC Chair Gary Gensler, and ongoing investigations had suggested a likely denial.

However, the analysts now believe approval is more probable, describing the issue as increasingly political.

Seyffart said:

Never gonna hear the end of this from the Ether people in my replies if this turns out to be true. But it’s what we’re hearing from multiple sources. Should see a bunch of filings over coming days if we’re correct.

Deadline coming

The SEC faces a May 23 deadline to decide on VanEck’s spot Ether ETF.

This application has been delayed to the maximum extent allowed under regulatory guidelines, making it the first among several spot Ether ETFs awaiting a decision, including those from ARK 21Shares, Hashdex, Invesco Galaxy, BlackRock, and Fidelity.

In an April 9 interview, VanEck CEO Jan van Eck expressed doubts about the SEC approving his company’s ETF in May.

Grayscale, another asset manager, withdrew its application for an Ether futures ETF on May 7, and Michael Sonnenshein stepped down as CEO on May 20.

Additionally, U.S. lawmakers recently voted to overturn an SEC rule affecting how banks deal with companies holding assets.

It remains unclear whether President Joe Biden will veto the resolution or sign it into law.

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