For Ethereum ETFs, SEC commissioner Hester Peirce strongly believes that the securities regulator would not repeat the same mistakes it made in the run-up to spot Bitcoin ETF approval. 

Ethereum ETF Approval Might Come Without Hassle

Award-winning Web3.0 host Zac Guzmán interviewed Peirce to discuss the regulation of cryptocurrency. During their discussion, he asked the commissioner if Ethereum ETF filers would need to go to court before receiving approval from the SEC just as Grayscale had done. Peirce responded that the SEC would not need to “repeat same mistake” as it did before. 

Popularly known as the ‘Crypto mom’, the commissioner went on to state that the agency would not need a court to explain that its approach is arbitrary and capricious before it gets things right this time around. In her opinion, the SEC has learned its lessons and they will stick to it as applications for Ethereum ETF kept coming in.

Before approving spot Bitcoin ETFs earlier this month, the SEC had constantly rejected applications from several interested parties including Grayscale. Notably, Grayscale took the rejection of its GBTC conversion application a step further by going to court. After several months of legal tussle, a US Court of Appeals for the District of Columbia Circuit handed Grayscale a win against the SEC.

This was pivotal for the crypto industry, especially as the court further mandated the regulator to reconsider its decision over Grayscale’s application. There had been several postponement of a spot Bitcoin ETF decision from the United States SEC but in less than six months of receiving this mandate from the court, the SEC greenlighted eleven spot Bitcoin ETF applications.

Ethereum Spot ETF Impact

Now the race is for Ethereum ETFs and the SEC seems to be taking its time to reach a decision. Based on a 45-day extension granted earlier, the regulator’s decision on Grayscale Ethereum Trust’s ETF is expected within the next two days. Hashdex Nasdaq Ethereum ETF, which aims to incorporate spot Ethereum and futures contracts into its portfolio has had its decision postponed earlier.

Similarly, the SEC has announced a 45-day extension for Fidelity Spot Ethereum ETF, pushing the decision on the product to March 5, 2024. As the broad market awaits the decision of the regulator, there are certain forecasts that ETH will reach as high as $4,800 when an approval is eventually given. 

Considering how Bitcoin has reacted to the launch of spot Bitcoin ETFs, there is no guarantee that it would be any different for Ethereum but the prospects remains high for approval for now.

The post Ethereum ETFs: Hester Pierce Claims SEC Won’t ‘Repeat Same Mistakes’ appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am