“SEC’s Stance on Ether Spot ETF: Firm Opposition with Internal Disagreements, says Fox Business Reporter”

"SEC's Stance on Ether Spot ETF: Firm Opposition with Internal Disagreements, says Fox Business Reporter"

"SEC's Stance on Ether Spot ETF: Firm Opposition with Internal Disagreements, says Fox Business Reporter"

Fox Business reporter Eleanor Terrett shared insights from issuers, investment management companies, and insiders at the U.S. Securities and Exchange Commission (SEC) regarding the outlook for an Ethereum spot ETF.

Contents
Toggle
Issuer Perspectives
SEC’s Stance
Institutional Perspectives

Terrett noted that an issuer (possibly Fidelity, BlackRock, Grayscale, VanEck, Invesco, ARK, or 21Shares) that has already launched a Bitcoin spot ETF and has also filed for an Ethereum spot ETF expressed confidence that the successful approval and launch of the Bitcoin ETF would prompt the SEC to further approve the Ethereum spot ETF.

However, another insider close to the SEC revealed that the current position of the SEC is “firmly opposed” to approving an Ethereum spot ETF, but there is internal disagreement on this matter. SEC Commissioner Hester Peirce, in an interview with a foreign media outlet yesterday, stated that the regulatory agency does not want to repeat the “delay” mistake it made with Bitcoin regarding an Ethereum ETF.

The biggest difference between Ethereum and Bitcoin lies in how regulatory authorities view the nature of the assets themselves, particularly the ambiguous stance of SEC Chairman Gary Gensler on whether Ethereum could be considered a security. Terrett sought opinions from industry insiders on this issue and received responses indicating that while the SEC’s definition of Ethereum is unclear, the U.S. Commodity Futures Trading Commission (CFTC) considers ETH to be a commodity. Furthermore, Ripple’s partial victory in its lawsuit will make it difficult for Gensler to continue claiming that the majority of digital assets are securities. Additionally, the successful launch of Ethereum futures ETFs and BlackRock’s track record of ETF approvals also bolstered confidence that an Ethereum spot ETF could potentially be launched before the end of summer.

In conclusion, Terrett summarized the perspectives mentioned above.