Despite widespread anticipation, Jake Chervinsky, Variant’s Chief Legal Officer, holds a pessimistic view regarding the approval of a spot Ethereum ETF by the United States Securities and Exchange Commission (SEC) in 2024. Chervinsky expresses doubts, citing potential backlash and political pressures faced by the SEC, especially following the approval of spot Bitcoin ETFs. He suggests that granting approval for an Ethereum ETF could further invite criticism and scrutiny.
Chervinsky highlights the SEC’s history of justifying denials based on arguments that may be legally questionable but serve political agendas. He mentions the example of BlackRock’s successful application for a spot Bitcoin ETF, attributing it partly to a cooperative relationship with the regulator and consistent pressure exerted by the firm.
Various investment management firms, including BlackRock and Grayscale, have submitted applications for spot Ethereum ETFs, signaling a growing interest in this investment vehicle. However, despite the submissions, the SEC has yet to make a decision, leading to uncertainty among applicants. The regulator has extended review periods and deadlines, indicating a cautious approach to approving new ETFs in the cryptocurrency market.