Reasons Why the Ethereum ETF Might Not Be Approved

Exciting news in the world of ETFs! James Seyffart, a top analyst, predicts that the US Securities and Exchange Commission might reject multiple Ethereum ETF applications this May. The reason? They could argue that Ethereum is considered a security.

While it’s not set in stone, Seyffart believes the SEC is seriously looking into this possibility. This perspective aligns with finance lawyer Scott Johnsson’s thoughts that Ethereum’s legal status will play a key role in the upcoming ETF decision.

According to Johnson, the SEC must provide a detailed explanation for any potential disapproval. They argue that offering ETFs based on commodities when the underlying asset is a security goes against regulation.

Interestingly, Bitcoin ETFs never faced this particular challenge. The SEC is set to make their final call on VanEck and ARK’s Ethereum ETF proposals on May 23 and May 24.

The general sentiment in the industry suggests that these applications might get rejected due to a lack of communication with issuers. Matt Hougan from Bitwise believes that the rejection would come down to insufficient data.

Big names like VanEck, Ark Invest, BlackRock, and Fidelity are all eager to launch spot Ethereum ETFs. Grayscale, which recently had legal success against the SEC, decided to withdraw their Ethereum futures filing.

Although ConsenSys has sued the SEC over Ethereum’s security status, BlackRock’s Larry Fink remains optimistic about the possibility of an Ether ETF launch. Exciting times ahead in the ETF world!

🚀 Ailtra Crypto Bot Earned $13.4M Million in 11 Months with 0% Loss!

🚀 Ailtra generated $13.4M in 11 months only!

Unlock 15-55% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st May: an AI Crypto Bot boasting 15%-55% monthly gains and $13.4M earnings in 11 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,500 spots are available in first phase – claim yours fast! 🔥

Ailtra.ai will not disclose your account information to any 3rd parties.