- Crypto lawyer Jake Chervinsky shares pessimistic views about the Ethereum ETF launch this year.
- Chervinsky points out the SEC’s political pressures that could negatively impact the ETF approval.
- According to him, the asset managers will withdraw their applications if the SEC necessitates it.
The potential Ethereum exchange-traded fund (ETF) approval has been the talk of the town over the past few months, especially following the Spot Bitcoin ETF launch. While many remain optimistic about the imminent launch, Jake Chervinsky, a prominent crypto lawyer, shared his pessimistic views.
The leading players in the industry, including BlackRock, Fidelity, Grayscale, VanEck, Ark and 21Shares, Invesco and Galaxy, Hashdex, and Franklin Templeton, have submitted their applications for the Ethereum ETF launch. Despite the Securities and Exchange Commission’s (SEC) multiple delays in the approval, the community believes that the agency will respond positively by May 2024.
In his latest X post, Chervinksy asserted that the SEC is undergoing intense “political blowback” that could stand as a critical barrier to approval. He stated, “I am a lot less confident about ETH ETF approval this year than many of you are.”
Chervinsky added that if the SEC decides to reject the ETF applications, the regulators have enough arguments to justify it. The lawyer wrote,
“The SEC has a legal argument that, even if wrong, likely passes the laugh test by enough to justify denial if it wants. And we know the SEC is willing to take wrong legal positions in court to satisfy political priorities.”
Moreover, Chervinksy shed light on the asset managers, including BlackRock’s “collaborative relationship” with the SEC. The lawyer stated that BlackRock received Bitcoin ETF approval with the collaboration and its ability to put “pressure” on the SEC. He added that these asset managers would withdraw their applications if the SEC necessitates it.
Recently, Fox Business reporter Eleanor Terrett shared the crypto community’s optimistic and pessimistic views of the Ethereum ETF approval. According to her research, the SEC’s Bitcoin ETF approval has bolstered the bullish beliefs on the Ethereum ETF launch.
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