Top Analyst Predicts Potential Lawsuit Over SEC’s Refusal to Approve Ethereum ETFs

The U.S. Securities and Exchange Commission’s (SEC) refusal to approve spot Ethereum exchange-traded funds (ETFs) this May could potentially trigger another lawsuit, according to a top analyst.

Nate Geraci, president of the ETF Store, has pointed out that the lack of engagement with issuers in recent weeks suggests that the SEC is unlikely to approve Ethereum ETFs. This one-sided communication is a stark contrast to the back-and-forth discussions that took place before the approval of multiple Bitcoin ETFs.

Eric Balchunas, Bloomberg’s senior ETF analyst, has highlighted the SEC’s silence on Ethereum ETFs, indicating that their approval is highly unlikely at this time. This could potentially lead to legal action, as Grayscale previously won a lawsuit against the SEC over its rejection of a Bitcoin ETF application.

Despite some questioning the significance of Ethereum ETFs compared to futures-based ETFs, Geraci believes that they are still important given Ethereum’s substantial market cap. With Ethereum’s market cap reaching $379 billion, analysts and issuers are paying attention to the potential approval of Ethereum ETFs.

Overall, the refusal to approve Ethereum ETFs by the SEC could have significant implications for the cryptocurrency industry, potentially leading to further legal battles and shaping the future of digital assets.