The approval process for an Ethereum Exchange-Traded Fund (ETF) appears uncertain, especially when compared to the recent launch of a Bitcoin ETF. The Bitcoin ETF launch was not without its challenges, including debates and lawsuits, but the Security and Exchange Commission (SEC) Chair, Gary Gensler, has always referred to Bitcoin as a commodity.
However, Gensler’s stance on Ethereum is less clear. When Bitcoin was classified as a non-security commodity, it was likened to gold and silver. Ethereum’s classification, on the other hand, remains ambiguous, which could impact the prospects of its own ETF.
In a recent interview with CNBC, Gensler reiterated his view of Bitcoin as the sole crypto commodity, implying that an Ethereum ETF might face more stringent scrutiny. He stated, “What we did this week… it’s happened to one non-security commodity token called Bitcoin,” thereby positioning Bitcoin as unique among its peers.
Gensler’s comments come amidst the SEC’s ongoing debate on what constitutes a security, a debate that has been particularly highlighted by the Ripple case, with several community arguments partly resting on Ethereum’s status.
While Gensler has openly categorized Bitcoin as a commodity, his reluctance to comment on individual tokens like Ethereum indicates complexity. This ambiguity could affect the expectations for an Ethereum ETF by May. Bloomberg’s senior ETF analyst, Eric Balchunas, reportedly gives a 70% chance of approval by May for the ETH ETF, a decrease from the more favorable odds given to Bitcoin at 90%.
Several Ethereum ETF proposals are awaiting SEC decisions this year, including proposals from VanEck and ARK 21Shares for ETFs backed by physical Ethereum. Custodianship could potentially involve major players like Gemini and Coinbase, with the SEC’s final decisions due by May 2024. Hashdex and Grayscale are planning to take their offerings to NASDAQ and NYSE respectively, with decisions expected by the first half of 2024. Grayscale has a significant deadline in June 2024 for its Ethereum Trust Conversion.
Invesco Galaxy and Fidelity are also in the race, with final decisions expected in July or August 2024. BlackRock has proposed an ETF under Nasdaq’s umbrella, hoping for a decision by early August 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Eric Balchunas, Gary Gensler |
| Companies | VanEck, Bloomberg, Hashdex, Securities and Exchange Commission, Gemini, Invesco Galaxy, Coinbase, Fidelity, BlackRock, Grayscale, NYSE, NASDAQ, CNBC, ARK 21Shares |
| Currencies | Bitcoin, Ethereum, XRP, Silver, Gold |
| Securities | None |
