Bloomberg Analyst: Approval of Ethereum ETF Unlikely, SEC Deems ETH as Security

In a recent analysis, Bloomberg’s senior ETF analyst Eric Balchunas has suggested that the Securities and Exchange Commission (SEC) is unlikely to approve spot Ethereum ETFs due to its classification of Ethereum (ETH) as a security.

Balchunas highlighted the SEC’s stance on Ethereum, emphasizing that the regulatory body views ETH as a security. He pointed out that the SEC’s recent inquiries into spot ETF proposals regarding commodity ETFs further underscore this perspective.

“The SEC is perhaps considering Ethereum as a security in their denial. Our odds of approval remain the same: slim to none,” stated Eric Balchunas, Bloomberg senior ETF analyst.

Echoing similar sentiments, Bloomberg analyst James Seyffart expressed skepticism regarding the SEC’s position on Ethereum ETFs. Seyffart suggested that while it’s possible for the SEC not to classify Ethereum as a security, recent actions indicate otherwise.

“I personally still think it’s more likely that the SEC does not claim Ethereum to be a security in these denials that are coming over the next week or so. But we’ll know soon enough,” Seyffart added.

The SEC’s recent actions further reflect this uncertainty. The regulatory body extended the review period for Invesco and Galaxy’s application to launch an Ethereum-based spot ETF, setting a new deadline for July 5. Additionally, the SEC postponed its decision on the Franklin Templeton spot Ethereum ETF, with a deadline set for June 11. Earlier, the SEC also extended the review period for a similar application from BlackRock.

The ongoing delays and uncertainties surrounding Ethereum ETF approvals indicate the regulatory challenges facing such investment products in the United States, highlighting the complexities of navigating the regulatory landscape in the crypto industry.

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