In a recent development on the Ethereum-based exchange-traded funds (ETFs) In sight, the US Securities and Exchange Commission (SEC) is unlikely to approve the products in May, a deadline awaited by many members of the community since the approval of Bitcoin ETFs in January, when strong speculation about ETH ETFs arose.
According to information da Reuters published on April 25, the SEC will likely deny ETFs from Ethereum in sight next month. According to the publication, issuers and other companies believe that the regulator will reject applications for spot Ethereum ETFs in May after meetings with the SEC in recent weeks.
Sources cited by the report reported that meetings between issuers and the SEC they were one-sided and regulator officials did not talk about the substantive details related to the proposed products.
The Agency is expected to decide on the Ethereum ETF requests from the giants, VanEck and ARK Investment Management, which are first in line, by May 23rd and 24th, respectively.
In recent months, the SEC has been postponing its decisions on approving or rejecting Ethereum spot exchange-traded funds. The SEC's decisions on the postponements come in the context of regulatory concerns about the cryptocurrency spot market. Historically, the SEC has expressed concerns about the possibility of fraud and manipulation in this market.
It is worth remembering that, last month, the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, continued without giving any clues about a Possible approval or denial of a spot Ethereum exchange-traded fund (ETF). In an interview with Yahoo Finance, the Agency's commander dodged questions about the SEC's position on Ethereum ETFs.
The SEC chairman was asked about the nearly 10 companies that have submitted applications for a spot Ethereum ETF, in addition to being asked whether he considered a summer court ruling involving asset manager Grayscale to be “precedent-setting.”
