ETF Analysts Predict SEC Could Reassess Spot Ether ETF Decision Due to Market Buzz

Jimmy Aki
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On May 20, ETF analysts James Seyffart and Eric Balchunas raised their probability of the US Securities Exchange Commission (SEC) approving a spot Ether exchange-traded fund from 25% to 75%. This shift in their prediction is based on recent discussions and developments surrounding the financial regulator.

US SEC Could Approve Spot Ether ETF Due to Political Pressure

Eric Balchunas, a senior analyst at Bloomberg, shared some insights into the current dynamics surrounding the SEC and its handling of spot Ether ETF applications. He suggested that the SEC is likely experiencing political pressure, which may influence its decision-making process.

Balchunas highlighted that the SEC allegedly requests major stock exchanges such as the NYSE and Nasdaq to update their filings related to spot Ether ETFs. However, it is important to note that this information has not been officially confirmed by the SEC.

This request for updates could signify a more proactive stance by the SEC in addressing the applications, possibly as a response to the political and market pressures they are facing.

Adding to the conversation, James Seyffart, another prominent ETF analyst, pointed out that the situation appears to be improving for spot Ether ETF approvals. Seyffart has increased its estimated odds of the SEC approving such ETFs from 25% to 75% based on information gathered from multiple sources.

He expressed cautious optimism, acknowledging that if these predictions are correct, they will receive major attention from the cryptocurrency community, especially from Ethereum enthusiasts who are closely monitoring the situation.

Meanwhile, Nate Geraci, co-founder of the ETF Institute and president of the ETF Store, clarified that despite these developments, the final decision regarding the registration requirement for individual funds (S-1 forms) remains pending. This means that while there is movement and speculation around the SEC’s actions, nothing has been officially decided or announced yet.

 

Spot Ether ETF Verdict May be Influenced by DEBT Box Case

The SEC has faced significant public pressure concerning its stringent actions against crypto firms. Critics have accused the SEC of “abuse of power” in its litigations against these platforms, calling for more transparency and fairness.

On May 14, Coinbase’s Chief Legal Officer, Paul Grewal, strongly criticized the SEC for the Debt Box case and the inappropriate issuance of a “Wells Notice.” A Wells Notice is a formal communication from the SEC informing a respondent of the charges the regulator intends to bring against them.

Grewal condemned the SEC for its lack of clarity and insufficient explanation of the charges, suggesting that the regulator’s actions appear inconsistent and arbitrary.

The controversy around the Debt Box case further illustrates the SEC’s contentious stance. A court filing revealed that the SEC was sanctioned for issuing a controversial restraining order against the crypto firm Debt Box. In a rare rebuke, Judge Robert Shelby condemned the agency’s actions, describing them as a “gross abuse of power,” which resulted in the forced resignation of two SEC lawyers.

These recent events and criticisms are speculated to influence the SEC’s reconsideration of a potential spot Ether ETF approval.

Conversely, a denial could maintain the status quo, continuing the uncertainty and regulatory hurdles faced by cryptocurrency-based financial products, even as exchanges like Binance face the consequence of its legal tussle with the SEC.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.