Is an Ethereum Spot ETF Approval Coming Soon? Here's What SEC's Latest Stance Suggests
CryptoNewsTerminal Staff16 May, 2024
Is an Ethereum Spot ETF Approval Coming Soon? Here's What SEC's Latest Stance Suggests
The U.S. Securities and Exchange Commission (SEC) is reportedly likely to reject the launch of an Ethereum (ETH) spot ETF, citing the lack of legal clarity surrounding ETH's status as a security. This news comes after the SEC approved a Bitcoin spot ETF in January, but emphasized that it would be more cautious in approving spot ETFs for other cryptocurrencies. Industry experts predict that the likelihood of the issuer filing a lawsuit after the SEC's rejection is low, due to the high cost and lower market interest in ETH spot ETFs compared to BTC. Additionally, with the US presidential election approaching, issuers may prefer to wait for results expecting a change in the government's stance. Despite the SEC's current stance, it is possible that ETH spot ETFs will be approved in the future if the legal clarity surrounding ETH's status as a security is established.
