Dogecoin co-founder Billy Markus joined a conversation on X about the United States Securities and Exchange Commission’s (SEC) potential decision on spot Ethereum ETF products. Amidst the expectations and skepticism about the potential of receiving approval from the securities regulator, Markus is less optimistic about Ethereum’s chances with the SEC.
Ethereum as Securities Rather Than Commodity
He based his opinion on the current “compromised” state of the regulator, citing that it holds little good for potential approval.
Ethereum’s legal classification as securities rather than commodities by the SEC is core to determining the upcoming decision. Furthermore, the Dogecoin founder highlighted that the Ethereum ETF would not make headway until the SEC cleans its “house”.
Recently, financial lawyer Scott Johnsson also voiced his opinion on the matter. He noted that Ethereum’s legal classification will feature prominently in the upcoming ETF decisions. Johnson identified the regulator’s reluctance to approve commodity trust shares for Ethereum, citing concerns about its securities-like nature. It is worth noting that spot Bitcoin ETFs did not face this categorization issue.
The decision deadline for VanEck and ARK Invest’s spot Ethereum ETFs is May 23 and 24 respectively. Even with these dates barely a week away, the broader crypto ecosystem is showing limited enthusiasm toward the possibility of approval as seen with spot Bitcoin ETFs.
New Decision Dates For Spot Ethereum ETF Applications
Meanwhile, the Commission has postponed its decision on the Invesco Galaxy spot Ethereum ETF application.
According to the SEC, it needed to allocate a longer duration for issuing an order on the proposed rule change. As a result, the new decision date for the investment asset management firm is July 5.
The proposal for Franklin Templeton’s Ethereum ETF was also extended, and the SEC will not decide until June 11, 2024.
Even with the drop in enthusiasm for spot Ethereum ETFs, quite a number of the applicants still have their filings with the SEC. However, Grayscale decided that it didn’t want to continue with the application, hence, it withdrew it.
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