SEC Expected to Deny Spot Ethereum ETF Approval Next Month, Industry Insiders Say

The US Securities and Exchange Commission (SEC) is expected to deny Spot Ethereum ETF approval next month, according to insiders. This news comes as a blow to the industry, with expectations of rejection looming in May. The ongoing meetings between issuers and the SEC have dampened hopes for approval, with little optimism remaining.

Since the successful launch of Spot Bitcoin ETFs earlier this year, the market has been eagerly anticipating the approval of other assets, such as Ethereum. The potential impact of an Ethereum ETF on the industry has been a topic of much discussion, but it seems that approval is now in doubt.

Insiders with knowledge of the ongoing meetings have indicated that an approval for an Ethereum ETF is not likely to happen in the near future. The lack of substantive discussions between the SEC and issuers has raised concerns about the agency’s willingness to approve the investment offering.

The contrast between the discussions leading up to the approval of the Bitcoin ETF and the current state of affairs regarding the Ethereum ETF is stark. While there were intensive and detailed discussions prior to the approval of the Bitcoin ETF, the meetings regarding the Ethereum ETF have been described as one-sided.

Despite the setbacks, issuers remain hopeful and have re-filed applications in anticipation of a potential approval in the future. The timeline for when an Ethereum ETF could see approval remains uncertain, but ongoing discussions between the SEC and issuers will continue to shape the path forward.

Overall, the denial of Spot Ethereum ETF approval next month is a significant development in the industry, signaling a potential shift in the SEC’s stance on investment offerings. Investors and industry players will be closely watching for any updates on the approval process in the coming months.