Ethereum ETF approval in May leaves crypto lawyer in doubt
Jake Chervinsky, the Chief Legal Officer at Variant Fund, expressed skepticism about the SEC’s possible approval of spot Ethereum ETFs in the United States by the May deadline. Chervinsky pointed out the complex legal and policy landscape in Washington, D.C. as a significant factor that could lead to the SEC rejecting the applications or requesting their withdrawal, despite the successful launch of spot Bitcoin ETFs in January.
SEC Chair Gary Gensler clarified that the approval of Bitcoin ETFs should not be seen as a broader acceptance of cryptocurrency ETFs, emphasizing the unique status of Bitcoin compared to other cryptocurrencies, which Gensler considers to be securities.
The discussion surrounding Ether ETFs has gained momentum, with major financial firms such as BlackRock, Fidelity, and Franklin Templeton submitting applications. Bloomberg ETF analyst Eric Balchunas suggested a 70% chance of approval by the May deadline, but Chervinsky questioned the overly optimistic views regarding BlackRock’s influence.
Opinions within the industry vary, with some analysts downplaying the significance of Ether ETFs compared to Bitcoin counterparts. On the other hand, ETF Store President Nate Geraci predicted that the impact of Ether ETFs could be underestimated, highlighting the substantial market cap of Ether (ETH) compared to Bitcoin (BTC).
There are also discussions about the timing of potential approval, with some, like Travis Kling of Ikigai Asset Management, suggesting that August might be a more realistic timeline for approval.
Read more: The flippening debate: can Ethereum surpass Bitcoin?
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