FOX Business reporter Eleanor Terrett reported a wide range of expectations regarding spot Ethereum ETF approvals January 23.
Notably, Terrett suggested that the U.S. Securities and Exchange Commission (SEC) is against approving a spot Ethereum ETF. She said:
“Another source tells me that the line at the SEC right now is a ‘hard no’ and that there is currently ‘some internal resistance’ to the idea.”
Terrett did not indicate whether that source is a member of the SEC itself or a member of an asset manager seeking SEC approval.
Terrett also noted that SEC Commissioner Hester Peirce, known for her pro-cryptocurrency stances, has advocated for a simpler decision-making process. The SEC approved spot Bitcoin ETFs in part because one applicant, Grayscale, won a legal victory, as SEC Chairman Gary Gensler explained in a statement. Peirce criticized this approach today in an interview with crypto news platform Coinage, saying ETF approvals should involve “regular consideration” rather than lawsuits requiring coercive action.
Terrett concluded that further evidence of the SEC’s position will emerge in the coming months as it becomes clear whether it deals with S-1 registration statements. The SEC typically posts notices of meetings with asset managers and exchanges on each ETF’s page as they occur.
Asset managers seem optimistic
Despite resistance within the SEC, Terrett suggested that the asset managers responsible for issuing each fund are optimistic about approval.
According to Terrett:
“[One] Issuer with an ETH Spot ETF application says it is confident that the approval and smooth launch of the Bitcoin spots will [SEC] to approve ETH spot ETFs.”
Another unnamed issuer said they expect a spot Ethereum ETF to launch by late summer due to the SEC’s previous approval of Ethereum futures ETFs and BlackRock’s strong ETF approval records.
That source also cited the CFTC’s comments suggesting Ethereum is a commodity, as well as Ripple’s partial legal victory over the SEC, as factors that could more broadly prevent the SEC from considering crypto assets as securities label. However, it is not clear that these developments will directly impact the approval of Ethereum ETFs in the coming months.
Public expectations around approval vary. Bloomberg ETF analyst Eric Balchunas stilt a 70% chance that a spot Ethereum ETF will be approved in May, while JP Morgan director Nikolaos Panigirtzoglou has predicted a 50% chance of approval. Polymarket odds suggest a 53% chance of approval.