Jake Chervinsky, Chief Legal Officer at Variant Fund, raised doubts about the SEC’s approval of spot Ethereum ETFs in the U.S. by the May deadline.
Chervinsky highlighted the complex legal and policy environment in Washington, D.C., as a significant factor that could lead to the SEC denying the applications or requesting their withdrawal despite the successful launch of spot Bitcoin ETFs in January.
SEC Chair Gary Gensler has clarified that the approval for Bitcoin ETFs should not be interpreted as a broader acceptance of cryptocurrency ETFs, emphasizing the unique status of Bitcoin compared to other cryptocurrencies, which Gensler considers securities.
The conversation around Ether ETFs has gained momentum with applications from major financial firms, including BlackRock, Fidelity, and Franklin Templeton.
Bloomberg ETF analyst Eric Balchunas suggested a 70% chance of approval by the May deadline. However, this was met with skepticism by Chervinsky, who criticized the overly optimistic views regarding BlackRock’s influence.
Opinions within the industry vary, with some analysts downplaying the significance of Ether ETFs compared to Bitcoin counterparts. In contrast, ETF Store President Nate Geraci predicted that the impact of Ether ETFs could be underestimated, citing the substantial market cap of Ether (ETH) relative to Bitcoin (BTC).
Discussions also extend to the timing of potential approval, with some, such as Travis Kling of Ikigai Asset Management, suggesting that August might be a more realistic timeline for approval.