Ethereum ETF Faces Backlash as Spot ETF Approval Delay

Ethereum ETF hope fades as SEC is still to approve a spot Ethereum exchange-traded fund (ETF)

According to spot Bitcoin ETF issuers, the United States Securities and Exchange Commission (SEC) will unlikely approve a spot Ethereum exchange-traded fund (ETF) shortly.

Ethereum ETF Hope Fades as SEC Delays Approval

Ethereum, the world’s second-largest cryptocurrency, has been the focus of rumors about a spot ETF approval after SEC Chair Gary Gensler approved 11 spot Bitcoin ETF applications in January.

Companies like BlackRock, Fidelity, and VanEck, which released spot Bitcoin ETFs, have been waiting in the wings for an Ethereum product. However, some are merely testing the waters and are unsure of a favorable conclusion.

During this week’s Paris Blockchain Week crypto event, VanEck CEO Jan van Eck expressed skepticism about the possibilities of an Ethereum ETF clearance.

“We were the first to file as well for Ethereum in the U.S., and we and [Ark Invest CEO] Cathy Wood, are kind of the first in line for May, I guess, to probably be rejected,” he told CNBC‘s Arjun Kharpal.

The SEC has until late May to complete its examination of VanEck’s Ethereum ETF, with additional applications pending until October.

Unlike Bitcoin, which has long been considered a decentralized commodity, the official regulatory position on whether Ethereum is a security needs to be clarified. That has made things difficult for ETH investors.