Ethereum

Spot

The crypto market has been anticipating the potential approval of Spot Ethereum ETF applications in the United States. However, <a href="https://twitter.com/DeItaone/status/1783437874068607069" rel="noopener noreferrer nofollow">recent reports</a> by Walter Bloomberg on X suggest that these hopes may be dashed, as regulatory obstacles loom large on the horizon.
<h2 id="b-us-sec-rigorously-scrutinize-the-crypto-space-b">US SEC Rigorously Scrutinize the Crypto Space</h2>
The U.S. Securities and Exchange Commission (SEC) has been scrutinizing the cryptocurrency space with increasing rigor, particularly concerning ETFs tied to digital assets. While Bitcoin ETF proposals have garnered much attention, Ethereum, the second-largest cryptocurrency by market capitalization, has also been in the regulatory spotlight.
Despite Ethereum’s growing popularity and utility in decentralized finance (DeFi) applications, the SEC appears hesitant to greenlight ETFs based on the digital asset. Unconfirmed reports suggest that the regulatory body may reject spot Ethereum ETFs as early as May. This decision is due to concerns by the Securities and Exchange Commission (SEC) regarding Ethereum ETFs. However, no official confirmation has been given yet.
The denial of Ethereum ETFs could have significant implications for the cryptocurrency market. While some investors may view ETFs as a more accessible and regulated means of gaining exposure to Ethereum, others may turn to alternative investment vehicles or opt for direct ownership of digital assets.
<h2 id="b-jpmorgan-highlights-challenges-affecting-spot-eth-etf-approval-b">JPMorgan Highlights Challenges Affecting Spot ETH ETF Approval</h2>
Recall that in January, JPMorgan, a prominent financial institution, <a href="https://thecoinrise.com/jpmorgan-doubt-the-likelihood-of-a-spot-ethereum-etf-approval-in-may/" rel="noopener noreferrer nofollow">cast doubts on the likelihood of a spot Ethereum ETF gaining approval by May</a>, expressing a cautious sentiment. For an ETF to be approved, JPMorgan’s Nikolaos Panigirtzoglou told The Block that the US SEC would need to classify Ethereum as a commodity, akin to <a href="https://thecoinrise.com/is-bitcoin-legal/" rel="noopener noreferrer nofollow">Bitcoin </a>(BTC), rather than a security.&nbsp;
This distinction is crucial, as securities fall under a different set of regulations compared to commodities. “This is far from certain, as he wouldn’t give more than a 50% chance to the SEC classifying Ethereum as a commodity before May,” Nikolaos said.
<h2 id="b-sec-greenlights-eth-futures-applications-b">SEC Greenlights ETH Futures Applications</h2>
Despite the delay in Spot ETH ETF approvals, the SEC began greenlighting investment vehicles tied to Ether Futures last year, indicating a growing acceptance of Ether as a commodity. The delay in VanEck’s application has also prompted the regulator to open the proposal to public comment, <a href="https://thecoinrise.com/sec-remains-silent-on-spot-eth-etfs-analyst-weighs-in/" rel="noopener noreferrer nofollow">allowing stakeholders to weigh in</a>.
Nevertheless, the crypto community remains optimistic about Ethereum’s long-term prospects, buoyed by its robust development ecosystem and widespread use cases. While the denial of ETFs may represent a setback, it is unlikely to deter the ongoing evolution of Ethereum and its role in shaping the future of finance.
The post <a href="https://thecoinrise.com/us-sec-likely-to-deny-spot-ethereum-etf-approval-in-may/" rel="noopener noreferrer nofollow">US SEC Likely to Deny Spot Ethereum ETFs Approval in May</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

US SEC Likely to Deny Spot Ethereum ETFs Approval in May

Table of Contents

TheCoinrise Media

Other articles published on Apr 25, 2024

Bitcoin Poised for Major Growth: Analysts Predict Post-Halving Surge Surpassing Gold

Bitcoin Price Prediction: Is BTC Set to Plummet Once More?

Bitcoin Trades Above $64k, As BlackRock’s BTC ETF IBIT Saw $0 Inflows

Best Meme Coins To Buy Thursday, April 25 – AiAkita Inu, Dogeverse, Lovely Inu, Waifu AI

Shiba Inu Burn Rate Sees Massive 2,076% Spike In 24 Hours

Is BEFE Coin Poised for a Major Price Rally?

Join our free newsletter for daily crypto updates!