Variant’s chief legal officer, Jake Chervinsky, recently voiced skepticism about the potential approval of Ethereum exchange-traded funds (ETFs) within the year. Chervinsky highlighted the political challenges currently influencing the U.S. Securities and Exchange Commission (SEC), potentially delaying the greenlighting of an Ethereum ETF.
Expectations for Ethereum ETF Hit Roadblocks
The SEC’s recent experience with Bitcoin spot ETFs, which faced hurdles despite a U.S. court’s backing, illustrates the uphill battle for Ethereum ETFs. Intense political scrutiny is one of the key factors adding complexity to the approval process, as Chervinsky pointed out.
Strategic Maneuvers by ETF Proponents
Referring to the collaborative efforts that led to the approval of Bitcoin ETFs, Chervinsky noted the SEC’s partnership with major players like BlackRock. He also mentioned that these organizations remain prepared to withdraw any Ethereum ETF applications if the SEC deems it necessary to comply with regulatory standards.
Despite the unpredictable market environment and speculative excitement surrounding cryptocurrencies, Ethereum managed to mark a noteworthy 30% surge in value, briefly exceeding the $3,500 threshold. This advance followed the successful Bitcoin ETF approvals.
Remaining hopeful, Chervinsky suggests that the approval of Ethereum ETFs is inevitable, aligning with the forecasts of industry analysts such as Bloomberg’s James Seyffart, who predicts a delay rather than a denial of Ethereum ETFs. Current Ethereum market values reflect a trading price of $3,425 with recent fluctuations.