SEC vs. Ethereum Spot ETFs: Why Applications May Be Rejected in May
Date: 2024-04-26 Author: Oliver Abernathy Categories: BUSINESS
Media are reporting plans by the US Securities and Exchange Commission (SEC) to reject applications to register spot Ethereum ETFs in May 2024. Negotiations between ETF issuers and the SEC, according to sources, were unilateral, leaving counterparties frustrated.
Expectations from the regulator
Representatives of exchange-traded fund providers have expressed the expectation that all applications for registration of spot Ethereum ETFs will be rejected. Their impression remained negative after meetings with SEC representatives, who did not discuss the details of the registered cases with them.
Unilateral nature of negotiations
Negotiations were one-sided, with the SEC not cooperating to discuss the details of the applications. This is in stark contrast to previous experiences with the launch of spot Bitcoin ETFs, where the dialogue was more constructive.
Despite the regulator's pessimistic attitude, some issuers intend to file additional papers to continue the dialogue with the SEC. They hope to be able to clarify the details and argue in favor of registering an ETF.
Limited meetings
According to the publication, the SEC held only a few meetings on these cases, which emphasizes the limited interaction with applicants and possible difficulties in understanding third-party positions.
Previously, Standard Chartered bank experts noted the lack of visible dialogue between the SEC and applicants for spot Bitcoin ETFs, which led to a change in their forecasts to more pessimistic ones.
