- Eleanor Terrett asserts that the optimism regarding the SEC’s Ethereum ETF approval is waning.
- Discussing with people familiar with the matter, Terrett identifies that the SEC hesitates to communicate with the issuers.
- Crypto critics like Senator Warren’s strong opposition to the ETF launch may be the reason for the SEC’s silence
The crypto community has been highly optimistic about the Securities and Exchange Commission’s (SEC) approval of the spot Ethereum ETF by May 2024. However, in a recent X post, Fox Business reporter Eleanor Terrett shared a different angle, positing, “Optimism about the SEC approving the ETH spot ETFs by May 23rd is waning.”
After discussing with people familiar with the matter, the journalist identified that the SEC is less eager to proceed with the Ethereum ETF launch. While the SEC remains little cooperative in the meetings with ETF issuers and custodians, a source familiar with the matter cited,
<blockquote> “Staff has been very hard to gauge on this and we’re not sure if anyone really knows what’s going on in their heads. But they’re going to have to start work soon if it’s going to have a shot.” </blockquote>
Contrary to the SEC’s frequent meetings with the asset managers before the spot Bitcoin ETF launch, the regulators remain silent now. As per one of the sources, SEC Chair Gary Gensler believes he has “placated” the industry with the Bitcoin ETF approval. In addition, the SEC has received criticism from prominent crypto critics like Senate Elizabeth Warren for the approval, who strongly oppose the Ethereum ETF approval too.
In a previous X post, Terrett shared insights on leading figures’ views on the potential approval of the ETH ETF. The individuals discussed a 50-50 chance regarding the ETF approval in May.
Recently, Eric Balchunas, Bloomberg’s Senior ETF analyst, commented on his dissatisfaction with the SEC’s approach to the Ethereum ETFs. He stated that the regulator’s hesitation to communicate with issuers is not a good sign for ETF approval.
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