Bloomberg’s ETF analyst Eric Balchunas said the U.S. Securities and Exchange Commission (SEC) will wait until the end of May. Ethereum It is unlikely to approve its spot ETF. believes.
Balchunas announced in a statement on David Lin’s YouTube channel that the chances of the ETH spot ETF being approved are low. Bachunas stated that one of the reasons for this was that the approval process was behind.
“The deadline for approval appears to be May 21. I think we’re six weeks away now and the SEC has yet to provide any feedback to issuers. Feedback requires issuers to submit these regulatory filings, and the SEC usually gets back to them and says, ‘We have 10 questions for you. Could you please address these and send us a new file?’ he says.
Then they review the new file and provide another set of feedback. This process will take weeks, if not months, and it hasn’t started yet. “So it gives the impression that even though we… have good resources at our disposal… the SEC has deliberately chosen not to provide feedback.”
Bloomberg’s senior ETF analyst also notes that SEC Chairman Gary Gensler’s views could prevent the approval of a spot Ethereum ETF.
“At Gensler’s heart, I think we can all agree, he thinks Ether is a security. She doesn’t want him to be treated like a commodity. So if he approves this, he will have accepted that it is a commodity. This is against his nature.
Balchunas also says that the SEC is not currently under pressure to greenlight a spot Ethereum ETF, but rather that Grayscale won a lawsuit against the market regulator before the spot Bitcoin ETF was approved.
In the ruling against the regulatory body, the judge found it unlawful for the SEC to not approve a product traded on the Grayscale Bitcoin exchange.
“I don’t think there is any scope for political turmoil for Gensler, and I don’t think he wants it anyway. But Bitcoin had it all; “They had a case they lost, Gensler didn’t mind being a commodity, and the political situation wasn’t that tense.”
