Benzinga - Amid the evolving landscape of cryptocurrency investment vehicles, issuers of Bitcoin (CRYPTO: BTC) ETFs have cast doubt on the U.S. Securities and Exchange Commission’s (SEC) readiness to greenlight an Ethereum-based ETF (CRYPTO: ETH).
What Happened: Issuers of Bitcoin ETFs expressed doubts on Tuesday about the U.S. Securities and Exchange Commission’s (SEC) willingness to approve an exchange-traded fund (ETF) for ether, CNBC reported.
Despite the SEC’s approval of spot Bitcoin ETFs earlier this year, companies like BlackRock, Fidelity, and VanEck are not optimistic about the approval of their ether ETF applications. The SEC has until late May to conclude its review, having already delayed its original decision deadline in March.
VanEck CEO Jan Van Eck, speaking at the Paris Blockchain Week, said, "The way the legal process goes is the regulators will give you comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs — and right now, pins are dropping as far as Ethereum is concerned.”
SEC Chair Gary Gensler has previously highlighted that most crypto assets are considered investment contracts and are subject to federal securities laws, which adds complexity to the ether ETF approval process.
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CoinShares CEO Jean-Marie Mognetti also shared his skepticism, stating that approval for an ether ETF is unlikely in the near term, especially due to the proof of stake protocol that Ethereum uses, differing from Bitcoin’s proof of work system which has not faced SEC objections from a securities law perspective.
"I don't see anything being approved this side of the year," he said.
Why It Matters: The apprehension surrounding the SEC’s decision on ether ETFs contrasts sharply with the optimism seen earlier this month. Digital Finance Group CEO James Wo indicated a high likelihood of approval for ETH spot ETFs. This sentiment was echoed by JPMorgan, which remained optimistic about the SEC’s eventual nod despite earlier assigning no more than a 50% chance for approval by May.
Moreover, Ethereum’s performance has been notably strong, outpacing Bitcoin amid rumors of a U.S. ETF approval. The market’s reaction to these rumors and the potential rate cuts could benefit not only Bitcoin and gold but also pose risks to the U.S. economy, as highlighted by investor Mike Novogratz.
Read Next: What’s Going On With ‘Dogecoin Killer’ Shiba Inu?
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