Ethereum
Bloomberg analyst projects new approval timeline
Several Ethereum ETF spot applications are waiting to be approved by the U.S. Securities and Exchange Commission (SEC), but Bloomberg Senior Analyst Eric Balchunas doesn’t think that will happen anytime soon.
Spot Ethereum ETF could arrive within the year
Grayscale Investment recently withdrew its application for Ethereum Futures ETF, saying it has several futures products already available on the market today. The company’s CEO, Michael Sonnenshein, said that Grayscale will continue to focus on converting its Ethereum Trust (ETHE) into a spot Ethereum ETF.
While speaking at a Financial Times event on Wednesday, Sonnenshein further explained why the company decided to take a break from the Ethereum ETF race. Balchunas’ message followed a statement from Sonnenshein, who seemed very positive about the securities regulator’s approval of his application.
“Grayscale Ethereum Trust is already an SEC reporting company. We file the 10-K and 10-Q [disclosures to the SEC]and we have always been a company that pushes our regulators to allow crypto to be introduced further and further into the regulatory perimeter,” Sonneshein said, further expressing confidence in the approval.
The Bloomberg analyst expressed pessimism about the chances of a spot Ethereum ETF this year. However, he believes approval could come a year later.
Why did Grayscale withdraw its ETH ETF deposit?
The Bloomberg analyst believes that Sonnenshein’s “excuse” for the withdrawal may not be the real reason. Balchunas pointed out that the ETF filing was made under the “33 Act Ether Futures ETF” to pave the way for a possible lawsuit. However, Grayscale’s decision to withdraw completely defeats the purpose because it closes “the door to anyone being able to sue.”
Outstanding, Grayscale Spot Bitcoin ETF followed the trend highlighted by Balchunas. It took the intervention of United States Court of Appeals for the D.C. Circuit for the SEC to review the investment manager’s filing which was then approved along with the others in January.
In the meantime, several one-off applicants for the Ethereum ETF are waiting for the SEC to rule on their applications. ARK 21Shares is still waiting for a response by May 23 even if some market observers don’t see it coming.
Likewise, the securities regulator postponed its decision on Invesco Galaxy spot Ethereum ETF until July 2024, further causing great uncertainty over approval.
Read also: Former SEC John Reed Stark Unveils How SEC Registration Helps Crypto Investors