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ust two months into the year, Jake Chervinsky, Chief Legal Officer at Variant, already believes there is little chance of receiving approval from the US SEC to launch Ethereum ETFs.
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US SEC Is Seeking to Prevent Reactions to the Spot Ethereum ETF
The cryptocurrency attorney expressed unequivocally that he did not think an Ethereum ETF will be approved by 2024. Chervinsky drew attention to the fact that the SEC suffered a number of consequences, including political criticism, for approving the listing of Bitcoin ETFs.
He thinks that approving an Ethereum ETF will make the criticism worse.
Chervinsky believes the SEC has sufficient evidence to support rejecting the petitions if it so chooses. He claims that even if these arguments may be incorrect, the SEC will not hesitate to adopt a legal stance that serves political expediency.
The prominent asset management company BlackRock was highlighted by the cryptocurrency attorney to provide context, emphasizing that the regulator's cooperative relationship with the company allowed it to get permission for its spot Bitcoin ETF. Chervinsky added that the firm's capacity to apply constant pressure was also a contributing factor.
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Applicants are awaiting the SEC's ruling.
A number of investment asset management companies, like as Grayscale and BlackRock, have applied to the U.S. securities government to express interest in spot Ethereum ETFs. Sometime in November 2023, BlackRock formally filed their application for an Ethereum ETF, much earlier than it was approved for its Bitcoin spot ETF, known as the iShares Bitcoin Trust (IBIT).
Lead by Michael Sonnenshein In the competition, Grayscale also submitted an application, submitting it around a month ahead of BlackRock.
The company asked for its Ethereum Trust (ETHE) to be converted into a spot Ethereum ETF. As a result, it and NYSE Arca filed Form 19b-4 with the US SEC. A number of asset managers, including Franklin Templeton, VanEck, ARK 21Shares, and others, have also expressed interest in the offering.
Although each of their applications is unique, they are all waiting for the SEC to decide on their application, which unites them all. The authority has been dragging out the process of deciding whether to approve or disapprove each of their specific recommendations. Grayscale's review period was extended by the SEC, which had set a deadline of January 25.
Although BlackRock's spot Ethereum ETF is still scheduled for clearance on March 10, the regulator may give it another go-ahead.