The post Ethereum ETF chances ‘slim to none’ as SEC considers ETH ‘security’ appeared on BitcoinEthereumNews.com.

SEC could reject spot ETH ETF application based on ‘security’ status. Mixed feelings on possible SEC’s rejection grounds as ETH price dropped.  The US SEC (Securities and Exchange Commission) has been quiet on the status of Ethereum [ETH] and whether it will approve the spot ETH ETF filings.  However, a recent development indicates that the agency could reject the ETF applications and raise ETH’s security status issue.  Reacting to a recent SEC’s notice on spot ETF filings, Bloomberg ETF analyst James Seyffart doubled his odds of the agency’s rejection of the applications. Seyffart commented,  “Looks like odds just went up for SEC to deny Ethereum ETFs by claiming #Ethereum is a security. Not a guarantee that they will do this, but I think this almost guarantees that the SEC is at least considering it.”  Mixed feelings about possible Ethereum ETF rejection The overall market has been expecting a rejection of ETH ETF applications in May. The above development could shed some light on the possible grounds for the agency’s move.  However, Nate Geraci of ETF Store wasn’t convinced the agency had a sound ground for rejecting the spot ETF applications. Citing the recent removal of staking features and existing ETH futures amongst others, Geraci wondered,  “If SEC denies spot eth ETFs, what will rationale be…Lack of correlation b/w spot & futures market? Then why approve eth futures ETFs. ETH = security? Then why approve eth futures ETFs. Staking? Issuers have (reluctantly) removed. I don’t see path for legal disapproval here.” Last week, ARK and 21 Shares removed staking features on their spot ETH ETF application. Some market watchers read the update as a possible approval by the SEC.  The sentiment was quickly reflected by the uptick in the chance of May ETH ETF approval on the prediction market, Polymarket. Approval…

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Filed under: News - @ May 16, 2024 9:10 am