SEC Likely to Reject Ether ETFs Next Month, Sources Report

As someone who has followed the cryptocurrency market closely, I share the sentiment of disappointment expressed by Todd Rosenbluth and others in the industry regarding the SEC’s stance on Ether ETFs. The lack of constructive feedback or questions during recent meetings is a concerning sign that these applications may be denied.


Based on information from four sources with knowledge of ongoing SEC discussions, it is expected that the Securities and Exchange Commission will decline the proposals put forward by American financial firms aiming to launch Ether-linked exchange-traded funds (ETFs).

In simpler terms, the one-way conversations during these meetings have caused doubt among companies such as VanEck and ARK Investment Management regarding the acceptance of their applications, which are due for a verdict on May 23rd and May 24th respectively.

I’ve noticed that Ether Exchange-Traded Funds (ETFs) have received approval as of August 2023. However, there remains a cautious atmosphere among market players regarding these funds. Grayscale Investments’ successful court ruling against the Securities and Exchange Commission (SEC) has given optimism that the previously approved Bitcoin spot ETFs and Ether futures-based ETFs will pave the way for the approval of Ether spot ETFs in the future.

During the recent meetings, I observed that the SEC staff failed to offer significant comments or questions regarding our applications. Their lack of engagement suggests a potential denial of our requests. If their decision turns out to be negative, it may dampen the optimism within the cryptocurrency community that Bitcoin’s regulatory advancements would extend to other digital currencies.

Todd Rosenblith, the head of ETF analysis at VettaFi, indicates that an approval could potentially be delayed until 2024 or later due to lingering regulatory uncertainty regarding new crypto products.

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2024-04-25 16:04