The SEC is said to be reconsidering where the Ether ETF should be denied, analysts say
Two exchange-traded fund analysts say they are reassessing the chances of the US Securities and Exchange Commission (SEC) approving space ether (ETH) exchange-traded funds after “hearing chatter” about the financial regulator.
In a May 20 X post, Bloomberg ETF analysts James Seifert and Eric Balchunas said the SEC may be “doing a 180” by banning spot ether exchanges this week. Documents from the regulator, public statements from SEC Chairman Gary Gensler and investigative reports have previously suggested that the commission may be preparing to ban Ether ETF applications.
However, according to Seifert and Balchunas, the two analysts changed their forecast on spot ether ETF approval from 25% to 75%. Seifert hinted that the investment vehicle is becoming an “increasingly political issue.”
“I'll never hear the end of this. [Ether] If people found this to be true in my reaction,” Seifert said. “But we hear from many sources. If we're right, we should see more records in the coming days.
The SEC must decide whether to approve or deny VanEck's spot ether ETF by May 23. The commission has delayed VanEck's application until it is approved by regulatory guidelines, making it the first in a long line of ether ETFs to consider — ARK 21Shares, Hashdex, Invesco Galaxy, BlackRock and Fidelity are awaiting a decision from the SEC. .
Related: If SEC Approves Spot Ether ETFs, Many Will ‘Hold Firmly Out of Bad'
In an April 9 interview, VanEck CEO Jan Van Eck expressed doubt that the SEC would approve the company's ETF application in May. Asset manager Greyscale withdrew applications for its Ether Futures ETF on May 7, and announced that Michael Sonnenschein will step down as CEO on May 20.
U.S. lawmakers in the House of Representatives and Senate have voted in the past two weeks to overturn SEC rules on how the regulator treats banks that deal with companies that own assets. It was unclear at the time of publication whether President Joe Biden intended to follow through on his threat to veto the congressional resolution or sign it into law.
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