In a recent update on Ethereum ETF, it is believed that the SEC may reject Ethereum ETF Spot applications until 2025, probably denying the Ethereum-spot exchange-traded funds on May 23.
Analysts are apprehensive about Ethereum’s future due to the lack of substantive communication between prospective issuers and its unclear regulatory status.
Not to mention the recent investigation by the SEC into the Ethereum Foundation. And, definitely not forget how Ethereum ETF approval has been kept on hold for a long time.
Will Ethereum Spot ETF Get Rejected?
This criticism has been worsened by Ethereum’s vague regulatory status and a lack of interaction with prospective issuers. An SEC investigation against the Ethereum Foundation further complicated this opinion.
If their applications are denied, potential ETF issuers like BlackRock, Fidelity, or Ark Invest can choose to refile them later or take Grayscale’s legal route and fight the SEC.
Will Elections Be A Game Changer?
As per the analysis, the upcoming US elections can prove to be a game-changer. If Donald Trump wins this time, the SEC might have to face a complete change of leadership. However, the crypto market as a whole might have a new friend to look up to!
“If there’s a new president, you file again. Maybe you get approved. Or you sue. Either way, that will take a whole other year to play out.”, said Balchunas.
Still, it doesn’t seem likely that the SEC will be sued again, especially in relation to Ethereum ETFs. The main reasons for this are the monetary and time expenditures linked to legal actions as well as the possible danger of offending the SEC.
“None of these other firms want to piss off the SEC,” Balchunas said. “Grayscale was unique in that it wasn’t a big ETF issuer. The rest of these firms have other things going on, and they’re more scared.” “Nobody else will step up,” he added.
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Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.
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