SEC Is 'Hard No' On Ethereum ETF; Issuers Hold Out For A Positive Turn

Following the landmark approval of the U.S. Securities and Exchange Commission (SEC) on the spot Bitcoin exchange-traded funds (ETFs), the agency reportedly has a "hard no" stance on Ethereum ETF. But, issuers hold on to hope for a turnaround.

The endorsement of a spot Bitcoin ETF within the United States has been heralded as a pivotal moment within the cryptocurrency sphere.

This landmark development carries significant implications for the industry, grounded in several compelling factors, including potential mainstream adoption of crypto assets, market liquidity and regulatory validation.

However, the SEC's stance on spot Ethereum ETFs appears less favorable, as it has been described as a "hard no" with reported "internal resistance to the idea," Fox Business' Eleanor Terrett shared.

While the journalist did not disclose specific sources, the information is said to encompass insights from ETF issuers, investment management firms, and individuals close to the SEC.

Moreover, she revealed that a recently approved spot Bitcoin ETF issuer with an ETH ETF application is "confident the approval and smooth launch of the Bitcoin spots will compel the SEC to approve ETH spot ETFs" and noted another source that believes "the listing of ETH futures ETFs and BlackRock's track record for getting ETFs approved leads them to believe the ETH spot ETFs could launch by the end of the summer."

In recent developments, the major Wall Street regulator postponed its decision on the spot Ethereum ETF application of Fidelity Investments, noting, "The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein."

While the SEC's decision to delay making a decision on the Ethereum ETF application of Fidelity is "completely expected," Bloomberg Intelligence ETF analyst James Seyffart said that the dates to watch out for are in "late May."

As of 6:30 a.m. ET on Thursday, Ethereum was trading in the red zone at $2,235.22 with a 24-hour trading volume of $8,966,157,357.

Over the past 24 hours, Ethereum has experienced a 0.38% decrease in value and an 11.25% loss in the past week.

Ethereum's current circulating supply stands at 120,180,143 ETH and its market cap is at $268,240,567,613, the latest data from CoinMarketCap showed.