SEC vs. ETH ETF Approval: Many Analysts Say Agency Will Reject Instead of Approval

Crypto News – According to a recent source, the SEC is expected to reject the spot Ether ETF in May.

SEC vs. ETH ETF Approval: Many Analysts Say Agency Will Reject Instead of Approval

Following talks with the regulator in recent weeks, Reuters reported on April 24 that U.S. issuers and other firms expect the SEC to reject spot Ether ETF applications next month. Four sources who participated in the meetings were cited in the report. The four individuals, who requested anonymity since the talks were private, claimed that the SEC’s staff has not provided meaningful facts about proposed products in recent meetings with issuers, and the sessions have been biased.

The sources were against in-depth conversations between issuers and the agency in January, weeks before it allowed spot Bitcoin ETFs, over failed attempts to discuss Ether ETFs. For more than ten years prior to the historic clearance, spot BTC ETF submissions were denied by the SEC.

Many Analysts Expect Further Delay in ETF Approval

Numerous analysts concur that the SEC will probably postpone approving Ether ETFs much longer.

It seems more likely that approval will be delayed until later in 2024, or longer,

Todd Rosenbluth, VettaFi ETF data analyst

In March, Bloomberg ETF analyst Eric Balchunas predicted that there was a 35 percent possibility that the SEC would approve a spot Ether ETF in May. Additionally, he mentioned that he had obtained “good intel” indicating that the SEC might be purposefully withholding information from potential fund issuers. Balchunas further stated that since Gary Gensler, the chair of the SEC, has declined to clarify whether ether was a security, his position on the matter may also have an effect on the decision-making process.