Eric Balchunas, senior ETF analyst at Bloomberg, said the SEC's position on Ether means a Spot Ethereum ETF may never be approved.
In his latest post on X, Balchunas highlighted that the US SEC considers Ethereum (ETH) to be a security. Therefore, the chances of a Spot Ethereum ETF being approved are almost zero.
To support his argument, he recalled that regulators had asked commenters about spot ETFs whether companies had correctly submitted proposals to list commodity ETFs.
“This indicates that the SEC likely rejects ETH as a security. Our chances of approval remain slim to none.”
Eric Balchunas, senior ETF analyst at Bloomberg
Bloomberg analyst James Seifert also believes that the SEC is more likely to abandon the Ethereum ETF as regulators once again require ETH to be safe.
“Also, I would like to add: Personally, I still think it is more likely that the SEC will not allege that Ethereum is a security in these denials over the next week or so. You will understand.”
Bloomberg analyst James Seifert
Last week, the SEC extended the review period for Invesco and Galaxy's application to launch an Ethereum-based spot ETF. The next deadline is July 5th.
Additionally, on April 23, the SEC postponed its decision on the Franklin Templeton Spot Ethereum ETF until June 11. Earlier, regulators extended the review period for a similar application from BlackRock.
