Jake Chervinsky, the Chief Legal Officer at Variant Fund, expressed skepticism regarding the SEC’s potential approval of spot Ethereum ETFs in the United States by the upcoming May deadline.
Chervinsky pointed out the intricate legal and policy landscape in Washington, D.C. as a key factor that could result in the SEC rejecting the applications or asking for them to be withdrawn, despite the successful introduction of spot Bitcoin ETFs in January.
SEC Chair Gary Gensler has made it clear that the endorsement of Bitcoin ETFs does not imply a broader acceptance of cryptocurrency ETFs, emphasizing the distinct status of Bitcoin in comparison to other cryptocurrencies, which Gensler views as securities.
The discourse surrounding Ether ETFs has picked up pace with submissions from major financial institutions like BlackRock, Fidelity, and Franklin Templeton.
Bloomberg ETF analyst Eric Balchunas suggested a 70% likelihood of approval by the May deadline, but Chervinsky was doubtful, criticizing the overly optimistic assumptions about BlackRock’s impact.
Industry opinions differ, with some analysts playing down the significance of Ether ETFs in comparison to Bitcoin equivalents. On the other hand, ETF Store President Nate Geraci anticipated that the influence of Ether ETFs might be underestimated, noting the substantial market capitalization of Ether (ETH) in relation to Bitcoin (BTC).
Conversations also revolve around the potential timing of approval, with some, like Travis Kling of Ikigai Asset Management, proposing that August might be a more realistic timeframe for approval.