After months of waiting, the spot Ethereum ETF decision for VanEck and Ark 21Shares is set to be secured this week. While there are multiple stances regarding the prospects of approval, history might be made this week, or not.
Will The SEC Approve Spot Ethereum ETF?
To an observer, the answer to this question is a big NO. This is because the commission under Chairman Gary Gensler has shown signs it is not ready to greenlight the product yet.
Several sources noted that the market regulator is moving to classify Ethereum security. Should it achieve this designation, it implies that any hope of approving an ETF tracking the coin might not see the light of day soon.
The regulator has made it a habit to postpone several applications for spot Ethereum ETF until now. Unlike the trends seen in the run-up to the approval of spot Bitcoin ETF, the communication between the SEC and Ethereum ETF applicants is somewhat non-existent. Also, the trading venues for these products are not apprised as required by the SEC.
These signs, alongside the low approval odds from Bloomberg Analysts, point to the possibility of securing a denial.
All Boils Down To Commissioner Votes
Despite what is obvious to industry observers, the final decision on whether to approve or deny a spot in Ethereum ETF rests with the 5-man commissioners in the agency.
The approving vote that led to spot Bitcoin ETF approval was 3-2. This time around, Gary Gensler who helped in flipping the votes in favor of Bitcoin is not a fan of Ethereum. The market remains upbeat about the position these regulators will take regarding Ethereum ETF this week.
Ethereum is notably moving with caution ahead of the ETH decision. At the time of writing, the coin is down 1% in 24 hours to $3,078 per CoinMarketCap data. The approval or denial of the long-awaited product can decisively shift the price trend significantly.
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