Why is the SEC Silent on Ether ETFs? Bloomberg Analysts Predicts 35% Approval Odds!
The possibility of an Ethereum (ETH) exchange-traded fund (ETF) approval is a topic of significant interest among investors. However, recent developments suggest a growing uncertainty regarding the approval process.
Analyst Insights:
Senior Bloomberg ETF analyst Eric Balchunas has expressed concerns regarding the likelihood of an ETH ETF approval. Balchunas points out a lack of communication from the Securities and Exchange Commission (SEC) to prospective fund issuers, indicating a potential obstacle to approval.
Reasons for Downgrade:
Balchunas has downgraded the chances of Ether ETF approval to 35%. He highlights the absence of feedback from the SEC to issuers, a critical step in the approval process. Additionally, he suggests that SEC Chair Gary Gensler’s perspective on Ether as a security might hinder approval, given his previous experiences with Bitcoin ETFs.
Silent Treatment:
Balchunas hints at a deliberate silence from the SEC towards fund issuers, indicating a possible reluctance from regulatory authorities to approve Ether ETFs.
Comparisons with Bitcoin ETF:
Balchunas compares the current situation with the past Bitcoin ETF race, noting a contrasting atmosphere that hints at a less favorable outcome for Ether ETFs.
Industry Perspectives:
Several industry experts offer their insights on the matter. ETF Store president Nate Geraci finds the SEC’s approval of ETH futures ETFs in October followed by a lack of approval for spot products in May perplexing. Matt Corva, the general counsel at Consensys, suggests that an ETH ETF denial could have positive long-term implications.
Recent Meetings:
Crypto exchange Coinbase and asset manager Grayscale met with SEC officials to discuss launching spot Ether ETFs. While this meeting was seen as a positive sign by some, others like Balchunas and VB Capital general partner Scott Johnsson remain cautious, citing the focus on correlation analysis between ETH and BTC futures.
Future Outlook:
Balchunas remains optimistic about the eventual approval of a spot Ether ETF but emphasizes uncertainty regarding the timing. He suggests that the outcome may be influenced by the U.S. Presidential election and potential changes in regulatory leadership.
Despite the current uncertainty, the prospect of an Ethereum ETF approval remains a significant point of interest for investors. While challenges persist, industry experts express cautious optimism about the eventual approval, emphasizing the need for continued monitoring and analysis of regulatory developments.
