Approval of Ethereum ETFs in Doubt, Says Crypto Lawyer

Approval of Ethereum ETFs in Doubt, Says Crypto Lawyer

Jake Chervinsky, the Chief Legal Officer at Variant Fund, has expressed uncertainty regarding the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) by the May deadline.

Chervinsky cited the intricate legal and policy landscape in Washington, D.C., as a crucial factor that could lead to the SEC rejecting the applications or requesting their withdrawal, despite the successful launch of spot Bitcoin ETFs in January.

SEC Chair Gary Gensler’s remarks clarified that the approval of Bitcoin ETFs should not be construed as a broader endorsement of cryptocurrency ETFs. Gensler emphasized Bitcoin’s unique status compared to other cryptocurrencies, which he considers securities.

The discussion surrounding Ether ETFs has intensified with applications from major financial firms like BlackRock, Fidelity, and Franklin Templeton.

Eric Balchunas, an ETF analyst at Bloomberg, suggested a 70% chance of approval by the May deadline. However, Chervinsky expressed skepticism, criticizing overly optimistic views regarding BlackRock’s influence.

Opinions within the industry diverge, with some analysts downplaying the significance of Ether ETFs compared to Bitcoin counterparts. Conversely, Nate Geraci, President of ETF Store, suggested that the impact of Ether ETFs could be underestimated, citing Ether’s substantial market cap relative to Bitcoin.

Discussions also revolve around the timing of potential approval, with Travis Kling of Ikigai Asset Management suggesting that August might be a more realistic timeline for approval.

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