The post Ethereum ETF Verdict on Horizon: Will Security Concerns Be Looked at? What to Expect from SEC’s Upcoming Decision appeared first on Coinpedia Fintech News
The U.S. SEC is nearing crucial deadlines for decisions on VanEck and ARK’s spot Ethereum exchange-traded fund (ETF) applications, set for May 23 and May 24, respectively. With the SEC approving several spot Bitcoin ETFs in January, speculation is rife that Ethereum ETFs could receive similar treatment.
A denial of VanEck’s application may set a precedent for rejecting similar applications from Grayscale, Franklin Templeton, Invesco Galaxy, and BlackRock later this year. However, the SEC is unexpectedly considering distinguishing between Ethereum (ETH) and staked Ethereum (stETH) or “staking as a service ETH” as securities, potentially facilitating the approval of a spot Ethereum ETF.
19b-4 Filings
The SEC’s request for issuers to submit their 19b-4 filings suggests an increased likelihood of ETF approval. This filing is a significant step in the regulatory process, signaling that the SEC is considering the specifics of these applications more seriously.
Market and Analyst Mixed Reactions
Having said that, Alex Thorn speculates that the SEC might approve Ethereum ETFs by differentiating between ETH and stETH, aligning with ongoing court cases, and maintaining regulatory consistency. Whereas, Anthony Pompliano believes approval would mark a significant regulatory acceptance for the entire crypto industry, potentially removing major barriers. However, Standard Chartered Bank also expects approval of Spot Ethereum ETFs this week.
Despite the bullish sentiments, AdamAssets remains skeptical regarding the implications of such an approval, especially given the Ethereum Foundation’s previous stance on securities laws. Approval might be seen as a “free pass” for selling unregistered investment contracts.
Price Volatility and Projections
Over the top, Ethereum’s price has surged over 20% in the last 24 hours, currently around $3,700, due to heightened expectations of ETF approval. QCP Capital projects that approval could push Ethereum’s price past $4,000, potentially reaching $5,000. If denied it might drop to $3,000. The market remains poised for volatility until the SEC provides an official statement.
The Bottom Line
Under Chair Gensler, the U.S. SEC has taken a tough stance on the crypto industry, filing lawsuits against major players like Binance, Coinbase, Kraken, and Uniswap. Just as Grayscale’s lawsuit led to the approval of spot Bitcoin ETFs, a similar legal strategy may be necessary to secure spot Ethereum ETFs in 2024.
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