The SEC appears ready to turn down spot Ethereum ETFs, diverging from its previous nod to Bitcoin ETFs. Reuters reports show that talks with the SEC are not meeting expectations and could result in a rejection at the end of May when the final reviews take place. On May 23 and 24, VanEck and ARK will both be waiting for the results of their proposals for Ethereum ETFs.
The SEC's lack of substantive discussion, in sharp contrast to the animated discussions before the Bitcoin ETF nods, suggests possible concerns. Only one of the few conversations on Grayscale's Ethereum ETF proposal is known to have taken place with Coinbase. This small exchange may indicate that the SEC is being cautious about the integrity of Ethereum's market data.
Bitwise's Matt Hougan suggests that the SEC may require further time for the study of Ethereum's futures market. Candidates for exchange-traded funds (ETFs) now anticipate rejections and litigation following, owing to the regulatory body's recent shift in communication.
This strategy may be reminiscent of the earlier court case that led to the adoption of Bitcoin ETFs. Jan van Eck, CEO of VanEck, expressed similar thoughts and highlighted the difficult situation by speculating about a rejection.
