Crypto Mom: Spot Ethereum ETFs Likely Approved without Lawsuit

The United States Securities and Exchange Commission (SEC) is unlikely to require a lawsuit to approve spot Ether (ETH) exchange-traded fund (ETF) applications, according to SEC Commissioner Hester “Crypto Mom” Peirce. In an interview with Coinage Media on January 24, Peirce referenced the Grayscale court ruling that preceded the approval of spot Bitcoin ETFs in the US. Peirce stated that the SEC should not need a court to deem their approach “arbitrary and capricious” in order for them to make the right decisions. While the SEC is expected to apply the precedent set by Grayscale, Peirce acknowledged that each ETF application has unique circumstances. She emphasized the importance of thoroughly preparing exchange-traded products for the market and ensuring that disclosures accurately align with the product’s functionality. Various prominent firms, including BlackRock, VanEck, Fidelity, and Grayscale, have submitted applications for spot Ether ETFs, and Bloomberg ETF analyst Eric Balchunas believes there is a 70% chance of approval by May. The SEC must make decisions on several applications by different dates throughout the summer, with Fidelity and BlackRock’s being the latest in August. Balchunas believes that if spot Bitcoin ETFs are approved, it is difficult to imagine a scenario in which spot Ether ETFs are not also approved. However, Morgan Creek Capital CEO Mark Yusko is less optimistic, predicting a less than 50% chance of approval and arguing that the SEC remains generally hostile towards the crypto industry.