ETFs
SEC May Approve Ether ETFs to Avoid Legal Showdown
8:28 a.m. ▪ 3 min reading ▪ by Fénelon L.
Contrary to rumors suggesting a politically motivated decision by the SEC to approve spot Ether ETFs, Bernstein analysts believe the regulator instead acted to avoid potential legal disputes. The move appears to provide a major boost to the crypto industry.
A decision based on legal rather than political considerations
Analysts Gautam Chhugani and Mahika Sapra of Bernstein dispute the theory of a political maneuver by Democrats behind the SEC Approval of Ethereum ETFs before the midterm elections.
According to them reportthe SEC knew it could not reject Ether ETF applications given the regulatory structure similar to previously approved Bitcoin ETFs.
With the listing of Ether futures products and a close correlation between the spot and derivatives markets, rejection of Ether ETFs would have exposed the SEC to potentially adverse litigation. The presidential veto on the repeal of a key accounting bulletin by the authority supports this hypothesis of a purely regulatory decision.
“The SEC undoubtedly adopted a pragmatic approach to avoid a legal conflict,” conclude the analysts, emphasizing the surprise of the candidates in the face of this unexpected green light.
A major development despite timid beginnings
Although Bernstein welcomes this major step forward for the crypto industry, the company is tempering initial expectations. Compared to the very popular Bitcoin ETFnew index products on Ether should initially attract less capital.
However, analysts predict “pent-up demand from the same institutional investors” and appreciation of the price of Ether before its actual launch. A positive outlook which confirms the importance of this step for the sector.
The final step will be SEC approval of registration statements filed by issuers such as VanEck, black rock or Loyalty.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
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The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.