Ethereum
SEC will finally make a decision on Ethereum ETFs this week
Alex Dovbnya
Ethereum ETF applications near decision deadlines
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The United States Securities and Exchange Commission is expected to approve or reject Ethereum spot exchange-traded funds (ETFs) this week.
The latest deadline for the SEC to rule on VanEck’s request is May 23. The proposal filed jointly by Cathie Wood’s investment management company, ARK Invest, and ETF issuer 21Shares will receive its verdict from the agency the following day.
The list of contenders to launch a spot Ethereum ETF also includes names such as BlackRock, Fidelity, Bitwise, Galaxy Digital, Franklin Templeton and Hashdex.
It is very likely that the SEC will reject Ethereum spot applications. Industry observers believe this will be the case due to the lack of engagement between the agency and ETF issuers.
While it is almost certain that the SEC will reject these products for now, it remains to be seen what official reason for this rejection will be stated in the agency’s next order. Matt Hougan of Bitwise suggested that the ETF could be rejected due to insufficient data. Meanwhile, some legal analysts like Scott Johnson believe that the SEC could recognize the underlying asset as an unregistered security in its order.
A new 2024 low against Bitcoin
Meanwhile, Ethereum recently hit a new yearly low against Bitcoin (0.044 BTC) on May 16. It managed to recover around 6% from this annual low. However, sentiment remains bearish due to the upcoming ETF decision.
The flagship altcoin is currently trading at $3,104, according to CoinGecko data. This is an increase of 8% compared to last week.
About the Author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes and other fintech media. He is particularly interested in regulatory trends across the world that are shaping the future of digital assets. He can be contacted at alex.dovbnya@u.today.