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Ethereum ETFs Will Not Require Legal Action To Be Authorized

2024-01-24 15:47:01

SEC Commissioner Hester Peirce stated, “We ought not to require a higher authority to tell us that our strategy is unreasonable and arbitrary for us to succeed in getting it correct.”


SEC Commissioner Hester Crypto Mom Peirce asserts that the SEC will grant spot Ether (ETH) exchange-traded fund (ETF) requests without the need for legal action. Recalling the Grayscale court decision that came before spot Bitcoin ETFs were approved in the US, Peirce stated in a conversation with Coinage Media on January 24 that we ought not to require a higher authority to tell them that our approach is random and unpredictable as a prerequisite for us to get it correctly.

Peirce emphasized that the SEC won't base their approvals on a court's decision, adding that their approach differs from such a reliance. Recognized as Crypto Mom for her supportive stance on crypto matters, Peirce stated that the SEC would likely follow the same precedent set by the Grayscale case. However, she acknowledged the substantial variations in facts and circumstances associated with each ETF application. Peirce highlighted the extensive effort involved in preparing an exchange-traded product for the market, underscoring the importance of ensuring that the disclosures align with the actual functioning of the product. Notable entities such as BlackRock, VanEck, ARK,  21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are among the applicants seeking SEC approval for spot Ether ETFs.

Eric Balchunas, The Chief Analyst For Bloomberg ETFs, Estimated That 70% Of Spots Will Be Approved For Ether EFTs by May

The SEC faces upcoming deadlines for deciding on several Ether ETF applications, including VanEck's by May 23, ARK 21Shares by May 24, Hashdex by May 30, Grayscale by June 18, and Invesco by July 5. Fidelity and BlackRock's applications are due for decisions by Aug. 3 and Aug. 7, respectively.

According to Bloomberg's Eric Balchunas, the approval of Ether ETFs seems more likely, and he finds it challenging to envision a scenario where spot Bitcoin ETFs are approved while spot Ether ETFs are not. However, industry opinions vary, with Mark Yusko, CEO of Morgan Creek Capital, suggesting a less than 50% chance of approved spot Ether ETFs, citing the SEC's overall skepticism toward the crypto industry. SEC Chair Gary Gensler also emphasized in a Jan. 11 letter that approving a spot Bitcoin ETF would not automatically lead to a mass approval of other cryptocurrency ETF applications.

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