Cryptocurrency market VanEck Ethereum ETF With only a month left until the deadline for its application, it is being watched whether the SEC in the USA will approve it. As Koinfinans.com reported, the approval of the Bitcoin ETF at the beginning of the year left its mark on the industry and put things on track.
The probability of SEC approval is now down to a “pessimistic 25%,” according to Bloomberg ETF Analyst Eric Balchunas. This continues to be a source of concern for investors. does.
According to market analyst, SEC Communication between the company and prospective applicants has been greatly reduced. Noting the lack of participation and deliberate postponement, Eric Balchunas believes the signs are not good.
Optimism for the Ethereum ETF has faded further with each passing month from market analysts. Leading up to the spot Bitcoin ETF approval in January, there had been numerous communications between the SEC and applicants with specific instructions on what to change in their applications. However, such communication has been almost non-existent regarding the ETH ETF, reducing the likelihood of approval.
Debate on Is Ethereum a “Security”?
One of the biggest hurdles to Ethereum ETF approval is market regulator concerns about its potential status as a security.
Recent media reports highlight that the Ethereum Foundation is under investigation by an unnamed government authority. Then came reports that the US SEC was issuing subpoenas to businesses with connections to Ethereum to understand the nature of their relationships. Speculation suggests that the regulator wants to establish a more appropriate basis for labeling Ethereum as a security.
