Spot Ethereum EFAs do not need a lawsuit to approve – Crypto Mom

According to SEC Commissioner Hester “Crypto Mom” ​​Pearce, a lawsuit will not be necessary to convince the United States Securities and Exchange Commission to approve Spot Ether's (ETH) exchange-traded fund (ETF) applications.

“We don't need a court to tell us that our process is ‘arbitrary and manipulative,'” Pearce said in an interview with Coinage Media on Jan. 24 when the grayscale court ruled. It was before spot Bitcoin ETFs were approved in the United States.

“That's not how we do our endorsements,” Pearce added.

Pearce – known as “Crypto Mom” who has a comparatively sympathetic stance towards crypto – said that the SEC would apply the same precedent as Grayscale; However, she admits that the facts and circumstances of each ETF application vary greatly.

“There's a lot of work involved in getting an exchange-traded product ready for market, including verifying that the disclosures are about how the product actually works,” Perce said.

“We heard from the court that the approach we are following is wrong. […] I think that kind of lesson will definitely stick with us.

BlackRock, VanEyck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale and Hashdex are among the Ether ETF applicants vying for SEC approval.

Related: The Impact of Bitcoin ETFs: ‘Revolutionary' or Big ‘Dude'?

Senior Bloomberg ETF analyst Eric Balchunas puts the chances of the Ether ETF getting approved in May at 70%.

The SEC is expected to rule on VanEck's application on May 23, ARK 21Shares on May 24, Hashdex on May 30, Grayscale on June 18 and Invesco on July 5.

Fidelity and BlackRock applications are due August 3 and August 7.

Balchunas recently told Cointelegraph that Ether ETFs appear to be in the process of being approved directly, adding that it is difficult to predict the approval status of Bitcoin ETFs in the absence of Ether ETFs.

“The Ether space is definitely attached to the hip of the Bitcoin space. It goes wherever it goes. It's basically like it's on a 15-foot rope following it.”

However, other industry experts are less optimistic.

Mark Yusko, CEO of Morgan Creek Capital, predicts a less than 50% chance of an authorized spot Ether ETF, arguing that the SEC has broad hostility to the crypto industry.

In a January 11 letter, SEC Chairman Gary Gensler stressed that approving the Bitcoin ETF space would not be a wholesale approval of other cryptocurrency ETF applications.

“[The spot Bitcoin ETF approval] In no way should it indicate a willingness to approve the Commission's listing requirements for crypto asset securities,” Gensler wrote.

“As I've said before and without reviewing any crypto asset, most crypto assets are investment contracts and are subject to federal securities laws.”

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in.