Ethereal ETF Approvals: SEC Commissioner Suggests Court Lawsuit Not Necessary
In a recent interview, Hester Peirce, Commissioner at the Securities and Exchange Commission (SEC), commonly known as “Crypto Mom,” expressed that a court lawsuit may not be required for the SEC to approve spot Ethereum (ETH/USD) exchange-traded fund (ETF) applications. Peirce stated that the SEC shouldn’t have to rely on a court ruling to correct its approach, saying, “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right.” She cited the Grayscale court ruling on Bitcoin ETFs as evidence that future decisions wouldn’t necessarily require legal intervention.
Peirce also addressed the question of whether a court case would be necessary to secure approval for an ETH ETF. She made it clear that this would not be the SEC’s approach, stating, “That’s not how we’re going to do our approvals.” She emphasized the importance of thorough preparation before bringing an exchange-traded product to market, including ensuring that the disclosures accurately reflect how the product functions.
Several major financial institutions, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, have applied for SEC approval of spot Ethereum ETFs. Decision deadlines range from May 23 to August 7. Bloomberg’s Senior ETF Analyst, Eric Balchunas, has assigned a 70% probability of an Ethereum ETF approval by May.
The postponement of the SEC’s judgment on Fidelity’s proposed spot Ethereum ETF until March 5 adds further to the anticipation surrounding the approval of these ETFs. At present, Ethereum is trading at $2,216, with a decrease of 5.51% in the last 24 hours.
Analyst comment
Neutral news.
As an analyst, it is likely that the market will experience increased anticipation and potential volatility leading up to the SEC’s decision on Ethereum ETF approvals. The comments from Commissioner Peirce suggest a positive sentiment towards approval without the need for a court lawsuit. However, the final outcome remains uncertain until the decision deadlines in the coming months. The current decrease in Ethereum price may be attributed to market fluctuations rather than this specific news.
