Search Inside Bitcoins

Bloomberg Says Odds Of SEC Approving Ethereum ETFs ”Slim To None” As New Filing Details Emerge

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Ethereum ETF
Ethereum ETF

Join Our Telegram channel to stay up to date on breaking news coverage

Bloomberg says the chances of the US Securities and Exchange Commission (SEC) approving spot Ethereum ETFs (exchange-traded funds) this month are “slim to none” as new filing details emerge.

This view comes after analysts uncovered details from a March filing with the SEC that seem to suggest the regulator is considering labeling the largest altcoin by market cap a security.

SEC Asks Public If BlackRock’s Ethereum ETF Can Be Filed As A Commodity

Davis Polk and Wardwell Associate Scott Johnsson analyzed a March 4 filing from leading asset manager BlackRock to list its spot ETH ETF on Nasdaq. In addition to delaying the deadline for the SEC to deliver a decision on BlackRock’s application until June, it also called for public feedback on whether the fund could be filed as a commodity.

The question was never asked in the run up to the approval of spot Bitcoin ETFs, according to Johnsson. 

The regulator can “deny on the basis that these spot filings are improperly filed as commodity based trust shares,” Johnsson said on X. This would mean that the funds “do not qualify if they are holding a security.”

The SEC is perhaps considering Ethereum as “a security in their denial,” added senior Bloomberg ETF analyst Eric Balchunas in a May 14 X post. “It was literally buried 50 feet deep in a pile of legalese.”

What Is The Securities and Exchange Commission (SEC)? – Forbes Advisor

SEC Likely Considering Labeling ETH A Security

Bloomberg ETF analyst James Seyffart said the filing increases the odds of a denial, adding that the request for public feedback “almost guarantees” that the regulator is considering labeling ETH a security

VanEck’s spot ETH ETF is the first filing that might get rejected, with the final deadline for the SEC to deliver a decision set for May 23.

Should  the regulator choose to reject that application, the commission would likely do the same for the spot ETH ETFs filed by Hasdex, ARK21Shares, Invesco Galaxy, Fidelity and BlackRock.s 

Related Articles:

Smog (SMOG) - Meme Coin With Rewards

Rating

Smog token
  • Airdrop Season One Live Now
  • Earn XP To Qualify For A Share Of $1 Million
  • Featured On Cointelegraph
  • Staking Rewards - 42% APY
  • 10% OTC Discount - smogtoken.com
Smog token

Join Our Telegram channel to stay up to date on breaking news coverage

Read next

Don't see the answer that you're looking for?

Ask us Now!