The approval of spot Ether (ETH) exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) may not require a legal battle, according to SEC Commissioner Hester “Crypto Mom” Peirce. In a recent interview with Coinage Media on January 24, Peirce, known for her favorable stance towards cryptocurrency, addressed the issue of ETF approvals in the wake of a recent Grayscale court ruling that influenced the approval of spot Bitcoin ETFs.
“We shouldn't need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right,” stated Peirce, emphasizing the need for the SEC to adopt a more consistent approach towards ETF approvals. Despite varying facts and circumstances for each application, she believes the SEC will presumably apply the same precedent set by the Grayscale case.
Peirce’s comments come as several major players, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, vie for SEC approval of their spot Ether ETF applications. Bloomberg’s senior ETF analyst Eric Balchunas assessed the chances of approval for these ETFs at 70% by May, with key decision dates spanning from May 23 to August 7 for various applications.
Notably, SEC Chair Gary Gensler’s January 11 letter emphasized that the approval of a spot Bitcoin ETF should not be interpreted as a green light for other cryptocurrency ETF applications. “The vast majority of crypto assets are investment contracts and thus subject to the federal securities laws,” he stressed.
Despite Peirce's optimistic outlook, industry experts like Morgan Creek Capital’s CEO Mark Yusko remain cautious, suggesting less than a 50% chance for approved spot Ether ETFs due to the SEC’s general apprehension towards the crypto industry.
This evolving situation highlights the complexities of cryptocurrency regulation and the anticipation surrounding the approval of spot Ether ETFs, marking a potential milestone in the integration of digital assets into mainstream financial products.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
