Fox News Reporter Reveals Conflicting Opinions as Market Awaits SEC's Decision on Spot Ethereum ETF

Fox News reveals stakeholders clash over SEC's decision on spot Ethereum exchange-traded fund.

Fox News correspondent Eleanor Terrett has brought to light conflicting opinions within the financial landscape regarding the potential approval of a spot Ethereum Exchange-Traded Fund (ETF).

While some industry participants express optimism, suggesting that the green light for spot Bitcoin ETFs could pave the way for Ethereum-based counterparts, potentially in late summer, others contend that internal resistance within the U.S. Securities and Exchange Commission (SEC) is tilting towards a rejection of Ethereum-based products.

According to Terrett's report, an issuer who has already secured approval for a spot Bitcoin ETF is confident that the successful launch could influence the SEC to give the nod to Ethereum ETFs. Conversely, another source paints a more pessimistic scenario, claiming a definitive "no" within the SEC and citing substantial internal resistance. A third source speculates that approval for Ethereum futures ETFs and BlackRock's success in obtaining ETF approvals may create a pathway for spot Ethereum ETFs to launch by the end of the summer.

When questioned about SEC Chair Gary Gensler's perspective on Ethereum's potential classification as a security, the source suggests that the Commodity Futures Trading Commission's (CFTC) designation of Ethereum as a commodity and recent legal developments with Ripple's XRP could complicate Gensler's assertion that most digital assets are securities.

"We need to be applying 'regular way' consideration to these products, the same kind of consideration we apply to similar products," stated SEC Commissioner Hester Peirce emphasizing the urgency of avoiding delays in the approval process for spot Ethereum ETFs.

Meanwhile, JP Morgan analysts, led by Managing Director Nikolaos Panigirtzoglou, express reservations in a note to clients sent on Jan. 18, casting doubt on the likelihood of SEC approval for spot Ethereum ETFs. Citing regulatory and judicial concerns, the analysts predict a less than 50% chance of approval and express skepticism about the SEC classifying Ethereum as a commodity as early as May.

As the SEC continues its deliberations on spot Ethereum ETFs, market participants eagerly await insights in the coming months. Terrett suggests that the SEC's handling of S-1 filings is likely to provide crucial clues into the agency's stance, leaving the ball firmly in the SEC's court as the crypto community anxiously watches developments unfold.