May 14, 2024 11:14 PM | 2 minute read
Ethereum (CRYPTO: ETH) backers may still be optimistic about the spot ETF's approval, but analysts tracking the move are raising the possibility of a rejection by the SEC.
what happened: Analyze March filings filed by Blackrock Co., Ltd. Financial lawyer to SEC over ETF application scott johnson We have discovered an “official” signal that regulators consider Ethereum to be a security.
While delaying approval, the SEC also sought public feedback on whether applicants had properly submitted their ETF listing proposals as products.
Mr. Johnson pointed out that this question was asked of all ETF applications and had never been asked of any ETF application. Bitcoin (CRYPTO: BTC) Spot/Futures ETF Product.
“The apparent purpose is to potentially deny these spot applications on the basis that they were improperly filed as commodity-based trust shares and would not qualify if they held securities. ' he added.
In response to his findings, Bloomberg analysts said, james seifert We believe that regulators are considering ETH security issues, increasing the likelihood that the Spot ETH ETF will be rejected.
Bloomberg ETF Analyst Eric Balchunas also weighed in on the discussion, emphasizing, “The chances of approval remain the same.It's almost nil.''
Why it's important: The SEC plans to make a decision in the future. Van Eck's Spot Ether ETF will be submitted by May 23, the final deadline for the first batch of proposals that will allow investors to bet on the spot price of the world's second-largest cryptocurrency.
Ethereum's status has become a major issue, with the SEC allegedly launching a covert operation to brand the cryptocurrency as a security. A rejection could be further pain for an asset already hampered by the market downturn in recent weeks.
price actionAt the time of writing, ETH was trading at $2,888.08, down 2.16% in the past 24 hours, according to data from Benzinga Pro.
Read next: Bitcoin, Ethereum, Dogecoin plunge on breach of wholesale price forecast: Analyst explores potential for Bitcoin to soar to $68,000
Enter to win $500 in stocks or crypto
Enter your email address to get Benzinga's Ultimate Morning Update, a free $30 gift card, and more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
