Spot Ethereum ETF Is Now Causing Conflicting Debate Among Large Investors

Key Points:

• Debate surrounds the approval of the spot Ethereum ETF, with conflicting views on the SEC’s stance.
• Asset managers are optimistic about spot Ethereum ETF approval, citing past successes despite ongoing regulatory uncertainties.

Fox reporter Eleanor Terrett has highlighted the ongoing debate surrounding the potential approval of a spot Ethereum ETF, revealing conflicting perspectives among various stakeholders.

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Spot Ethereum ETF Approval Debate Intensifies Amid Divergent Views

While some issuers anticipate approval, correlating it with the recent green light for spot Bitcoin ETFs, others argue that the SEC’s approval of a spot Ethereum ETF is uncertain due to internal resistance. Terrett refrained from specifying the source, whether it be a member of the SEC or an asset manager seeking approval.

Notably, SEC Commissioner Hester Peirce, known for her favorable stance on cryptocurrencies, has advocated for a more straightforward decision-making process. She criticized the SEC’s approach, emphasizing the need for “regular way consideration” rather than decisions influenced by legal victories.

The reporter suggested that the SEC‘s stance would become clearer in the coming months, especially as it engages with S-1 registration statements and posts meeting notices with asset managers and exchanges. Despite internal resistance, asset managers remain optimistic about approval, citing the SEC’s earlier approval of Ethereum futures ETFs and BlackRock‘s strong track record with ETFs.

An unnamed issuer expressed expectations for a spot Ethereum ETF to launch by the summer’s end, drawing parallels to the SEC’s previous approval of Ethereum futures ETFs.

Factors such as the CFTC’s classification of Ethereum as a commodity and Ripple’s legal victory against the SEC were mentioned, indicating broader implications for the SEC’s labeling of crypto assets as securities. However, the impact of these developments on spot Ethereum ETF approvals remains uncertain in the upcoming months.