Ether spot ETF approval seen as increasingly doubtful by industry professionals: Reuters

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The Block2024/04/25 12:10

By:Brian McGleenon

Industry professionals are increasingly doubtful about the chances of approval for ether spot ETFs by the SEC in May, according to Reuters.The price of ether has fallen by over 5.5% in the past 24 hours, according to The Block’s Price Page.

Ether spot ETF approval seen as increasingly doubtful by industry professionals: Reuters image 0

There are growing doubts among industry professionals that the U.S. Securities and Exchange Commission will approve spot ether exchange-traded funds in May, according to a Thursday report from Reuters — which claims that industry sources expect the SEC to deny applications to launch spot ether ETFs in May after U.S. issuers and other firms had discouraging meetings with the agency in recent weeks.

Reuters reported that four industry representatives have stated that recent meetings between issuers and the SEC have been one-sided, with agency staff not engaging in substantive discussions about the filed ETF applications.

"It seems more likely that approval will be delayed until later in 2024, or longer. The regulatory picture still seems cloudy," VettaFi Head of ETF Analysis Todd Rosenbluth told Reuters.

OKX cryptocurrency exchange president Hong Fang told Reuters that doubts surrounding spot ether ETF approvals would place downside pressure on the second-largest digital asset by market cap. "There's more downward pressure on prices as people build that expectation in," Fang said.

VanEck, ARK Investment Management and seven other issuers have submitted filings with the SEC to list ETFs that would track the spot price of ether. The SEC deadlines to decide on VanEck's and ARK's filings are May 23 and May 24, respectively.

Ether fell over 5.5% in the past 24 hours and was trading at $3,084 at 7:07 a.m. ET, according to The Block’s Price Page .

The price of ether has fallen by over 5% in the past 24 hours. Image: The Block.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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