Anticipation is growing in the cryptocurrency market as issuers and investors eagerly await the potential launch of an Exchange-Traded Fund (ETF) for Ethereum. Recent regulatory developments, such as the approval of a Bitcoin ETF, have raised hopes for the green light on an Ethereum ETF. However, there are indications of internal resistance within the U.S. Securities and Exchange Commission (SEC).
Insiders reveal that the SEC is facing internal resistance when it comes to approving an Ethereum ETF. Sources close to the commission suggest that there is a prevailing “hard no” sentiment towards the proposal. Concerns and deliberations within the regulatory body have made the path to approval less straightforward than expected.
Hester Pierce, a Republican Commissioner within the SEC, has been a vocal advocate for cryptocurrency ETFs, including Bitcoin. She believes that the SEC must take a “regular way” approach to Ethereum ETFs in order to avoid the delays seen with Bitcoin ETFs. Pierce’s stance shows a commitment to streamlining the regulatory process and providing clarity for the cryptocurrency market.
Despite the internal resistance, there is still optimism among issuers and other sources that an Ethereum ETF could be approved by the end of the summer. This optimism is grounded in several factors, including the Commodity Futures Trading Commission’s classification of Ethereum as a “commodity.” This distinction separates Ethereum from securities and could lead to a more favorable regulatory outlook.
Another factor contributing to the optimistic outlook for an Ethereum ETF is XRP’s recent legal victory against the SEC. The court ruling that XRP is not a security has implications for the broader cryptocurrency market. XRP attorney John Deaton believes that this victory, along with Ripple’s influence, could make it difficult for SEC Chairman Gary Gensler to classify cryptocurrencies as securities.
An issuer of a Bitcoin Spot ETF that also holds an Ethereum Spot ETF has expressed confidence in the eventual approval of Ethereum ETFs by the SEC. They argue that the successful approval and launch of Bitcoin Spot ETFs should encourage the SEC to do the same for Ethereum Spot ETFs. This issuer’s stance reflects the broader sentiment in the cryptocurrency industry, where stakeholders view the approval of one ETF as a positive precedent for others.
