In recent months, Ethereum exchange-traded fund (ETF) approval has been in the spotlight, especially after the launch of the Spot Bitcoin ETF. While many are optimistic about an imminent launch, prominent crypto lawyer Jake Chervinsky shared his pessimistic views. This has sparked concern among investors and crypto enthusiasts. In this news, we will examine Chervinsky’s concerns, analyze his perspective on the SEC’s ETF approval process. We will also discuss the crypto community’s divided views on the Ethereum ETF. Here are the details…
Optimism fades for Ethereum ETF approval
The potential approval of an Ethereum exchange-traded fund (ETF) has been a major topic of discussion in the cryptocurrency community, especially following the launch of the Spot Bitcoin ETF. But recent comments from prominent crypto lawyer Jake Chervinsky have cast doubt on the possibility of an Ethereum ETF launching soon.
cryptokoin.com As we reported, industry leaders such as BlackRock, Fidelity, Grayscale are applying for Ethereum ETF. But Chervinsky warns against excessive optimism. He cites the “intense political blowback” the Securities and Exchange Commission (SEC) faced following Bitcoin ETF approval as a critical hurdle.
Approval may not come this year
In a recent post, Chervinsky expressed skepticism, saying, “I am much less confident than many of you about ETH ETF approval this year.” He argues that the SEC has legal grounds to reject the applications, even if their stance is legally questionable. He highlights the SEC’s past willingness to prioritize political considerations over sound legal judgment in similar cases.
Chervinsky highlights the “collaborative relationship” between certain asset managers, such as BlackRock and the SEC. He suggests that BlackRock’s success in securing Bitcoin ETF approval can be attributed to this collaboration, pointing to the potential for other companies to withdraw applications if pressured by the SEC.
Bitcoin ETF approval also gave hope for ETH
Despite Chervinsky’s concerns, the crypto community remains divided. As Fox Business reporter Eleanor Terrett noted, the Bitcoin ETF approval has undoubtedly increased optimism about a potential Ethereum ETF launch. However, Chervinsky’s views offer a valuable counterpoint, urging caution and highlighting potential hurdles that could delay or even derail the highly anticipated Ethereum ETF approval.
It remains to be seen whether the SEC will ultimately green light Ethereum ETF applications. As May 2024 approaches, the coming months will be crucial in determining the fate of these offerings and their potential impact on the cryptocurrency market.
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