Jake Chervinsky, Chief Legal Officer at Variant Fund, expressed uncertainty regarding the Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETFs in the United States by the May deadline.
Chervinsky highlighted the intricate legal and policy landscape in Washington, D.C., as a significant determinant that could prompt the SEC to reject the applications or request their withdrawal, despite the successful launch of spot Bitcoin ETFs in January.
SEC Chair Gary Gensler’s remarks emphasized that the approval of Bitcoin ETFs should not be construed as a broader endorsement of cryptocurrency ETFs, underlining Bitcoin’s unique status compared to other cryptocurrencies, which Gensler views as securities. The discourse surrounding Ethereum ETFs has gained momentum, with applications submitted by prominent financial institutions including BlackRock, Fidelity, and Franklin Templeton.
Bloomberg ETF analyst Eric Balchunas suggested a 70% likelihood of approval by the May deadline. However, Chervinsky expressed skepticism, critiquing overly optimistic perspectives regarding BlackRock’s potential influence.
Opinions within the industry diverge, with some analysts downplaying the significance of Ether ETFs compared to their Bitcoin counterparts, while others, such as ETF Store President Nate Geraci, anticipate underestimation of Ether ETFs’ impact, considering Ether’s substantial market capitalization relative to Bitcoin.
Debates also encompass the timing of potential approval, with some, like Travis Kling of Ikigai Asset Management, proposing August as a more realistic timeline for approval.