In a historic move, Hong Kong has approved Bitcoin and Ether spot ETFs in the US, but they may be rejected due to regulatory issues. In recent talks between a U.S. issuer and the SEC regarding the possibility of launching an exchange-traded fund (ETF) that tracks the price of Ether, the issuer expected to be rejected, according to four people familiar with the matter. It is said that there is
Reuters reports that VanEck and seven other issuers, including ARK Investment Management, want to sell an ETF that tracks the spot price of Ether, the world's second-largest cryptocurrency after Bitcoin. It is said that there is. However, the meeting with the SEC was largely one-sided and did not go into details about the planned products. This is a far cry from the careful consideration that followed the SEC's historic approval of a spot Bitcoin ETF in January.
Is there a possibility of delay or denial?
Disavowed in part as securities regulators have not expressed specific doubts or engaged in dialogue, despite issuers basing their claims on previously approved Bitcoin ETFs and Ether futures-based ETFs predicts the possibility of Issuers are concerned about this change in the SEC's approach, which signals bad times for Ether ETFs. This loss would be disappointing, as the crypto industry had hoped that more people would embrace the Spot Bitcoin ETF once it was approved.
Many analysts predict that the Ether ETF could experience delays. Some issuers have said they plan to file further documents with the SEC to continue the dialogue, but Ether's market performance has already been affected by expectations of rejection. Despite rising 39% in value this year, ether still underperforms Bitcoin, which is up more than 51% and hit a new all-time high last month. This difference shows how uncertain the situation remains regarding Ether's regulatory status and potential for widespread use.
According to VettaFi ETF data analyst Todd Rosenbluth, approval of the Spot Ether ETF could be delayed until perhaps late 2024 or later due to the uncertain regulatory landscape. Bloomberg ETF analyst Eric Balchunas previously estimated in May that there was a 35% chance that this kind of ETF would be approved by the SEC, and that the SEC intended to communicate with potential fund issuers. It was emphasized that there is a possibility that people are avoiding it.
In contrast to Bitcoin ETFs, the SEC has held several meetings regarding Ether products. They are primarily focused on data observations, suggesting that approval may be delayed until further market developments are expected. If the SEC ultimately rejects the Ether ETF, some applicants anticipate potential legal challenges before such a product is ultimately approved. However, the regulatory landscape remains uncertain, with issuers and investors awaiting further clarity from the SEC.
