- Optimism for an Ethereum ETF approval is dwindling.
- The SEC is reportedly reluctant to engage with proposals.
- The commission has recently reignited its debate on Ethereum as a security.
Over the past months, the crypto industry has remained on edge, awaiting the SEC ’s decision on the eight Ethereum ETF proposals currently under review. While many are hopeful for the commission to follow its Bitcoin ETF precedent, the SEC’s track record of delays and unfriendly approach to the industry has posed a challenge to predicting a positive outcome.
Adding to the intrigue, the SEC has maintained a nonchalant approach to the prospect of the proposed investment vehicle, further dampening optimism.
Is an Ethereum ETF Approval Unlikely?
According to Bloomberg analyst Eric Balchunas on Tuesday, March 26, the likelihood of an Ethereum ETF approval is diminishing.
The argument centers on the prevailing pessimistic outlook among analysts, and the absence of positive indicators around the proposals, reducing the once-promising odds for approval to 25%.
Balchunas emphasized that the commission’s lukewarm approach to the engagement with issuers appears intentional rather than mere procrastination, further casting doubts on the likelihood of approval.
The diminishing optimism aligns with the SEC’s renewed spotlight on Ethereum, reigniting its debate on the assets’ securities status.
Will the Ethereum Debate Impact ETFs?
Despite being long considered a commodity, the SEC has signaled its intent to revisit the conversation regarding Ethereum’s classification.
The renewed debate has triggered a debate among industry watchers and analysts, who assert that chair Gary Gensler lacks the authority to reclassify Ethereum as a security unilaterally.
While the debate has raised a shadow on the future of Ethereum ETFs, analysts point out that the pursuit of approval by influential figures like BlackRock could complicate the SEC’s efforts, particularly given the firm’s track record of success in ETF approvals.
The SEC has also consistently pushed back deadlines on the eight proposals, leaving the prospects of approval for the proposed investment vehicle uncertain.
Discover more about the recently renewed debate by the SEC on Ethereum’s status:
SEC Reignites Ethereum Debate Yet Again: Security or Not?
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