SEC Commissioner Discusses the Prospect of Approving an Ethereum ETF

2024-02-08, 16:00

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![](https://gimg2.gateimg.com/image/article/1707407263SDFXnew.jpeg)

## TL; DR

The SEC will make its decision on BlackRock’s ETH ETF in May 2024.

Hester Peirce, the SEC commissioner, has hinted that the regulator may approve spot ETH ETFs sooner or later.

The approval of ETH ETFs may legitimize ETH as a worthwhile investment asset.

## Introduction

There is much hope in the cryptocurrency sector that the United States SEC may soon approve <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> exchange traded funds ([ETFs](https://www.gate.io/blog_detail/538/what-are-etfs-etps-etns "ETFs")). The market expects the approval to come within the next 45 days after the SEC extended its final decision date. The approval of spot <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs has set a strong precedence for ETH ETFs.

This post explores the views of one SEC commissioner on the possibility of ETH ETF approvals during 2024. We shall also look at the reasons for the SEC’s delay in making its final decision on Ethereum ETF applications.

## SEC Nears Ethereum ETF Approvals

Based on Hester Peirce, a SEC Commissioner ’s recent remarks the Securities and Exchange Commission (SEC) may approve Ethereum ETFs in the near future. Her views indicate that the SEC’s position on crypto exchange traded funds (ETFs) could have changed.

Peirce’s comment gave a [hint at a possible SEC regulatory shift](https://youtu.be/b-LmqVMF8I0 "hint at a possible SEC regulatory shift")  pertaining to cryptocurrencies like bitcoin and ETH. Hester Peirce, popularly referred to as “Crypto Mom” has maintained her support for cryptocurrencies. She talked about the correlation between crypto futures and spot markets in cryptocurrencies, a perception that points to a possibility of an ETH ETF approval.

According to Peirce, the regulatory authority’s approach to cryptocurrency ETFs should not hinge on whether or not an asset is a security or a commodity. What is important is to maintain a consistent approach towards exchanged traded fund products. Her point of view indicates that the SEC should adopt a broader and inclusive position on ETFs.

Read also: [These Are the High-Profile Spot Bitcoin ETF Applications](https://www.gate.io/learn/articles/these-are-the-high-profile-spot-bitcoin-etf-applications-currently-in-pllay/1258 "These Are the High-Profile Spot Bitcoin ETF Applications")

Peirce [said](https://youtu.be/b-LmqVMF8I0 "said"), “We shouldn’t need a court to tell us that our approach is arbitrary and capricious in order for us to get it right. I certainly hope that won’t be the case. People will look to precedent in making arguments for other products and we, looking at the facts and circumstances, will presumably apply that precedent.”

Pierce believes that there is no need for someone to go to court to force the SEC to approve ETH ETFs. This is because the court will most likely apply precedence on the case, after [bitcoin ETF](https://www.gate.io/learn/articles/what-is-a-bitcoin-etf/218 "bitcoin ETF") approvals.

Oftentimes, Peirce has criticized her SEC colleagues for their stance on cryptocurrency issues. Coindesk [recently reported](https://au.finance.yahoo.com/news/eth-etfs-inevitable-195202296.html "recently reported") that the commissioner recently criticized Gary Gensler, the SEC chairperson, for squandering a “a decade of opportunities to do our job” in an “unnecessary, but consequential, saga” that kept in-demand products from investors and “has driven retail investors to less efficient means of attaining Bitcoin.”

Related news: [Crypto Market Investment Outlook for 2024](https://www.gate.io/learn/articles/crypto-market-investment-outlook-2024/1690 "Crypto Market Investment Outlook for 2024")

She added, “Congress did not authorize us to tell people whether a particular investment is right for them, but we have abused administrative procedures to withhold investments that we do not like from the public.”

## SEC Delays Decision on Several Ethereum ETF Applications

The SEC has delayed its final decision on BlackRock’s spot ETH ETF application – pushing forward the verdict date by 45 days. Legally, its deadline to propose rule change on that particular ETH ETF application was  25 January.

Commenting on its delay, the SEC said that it is still waiting for public feedback on the proposed rule change on Blackrock ETH ETF. It [said that](https://www.sec.gov/files/rules/sro/nasdaq/2024/34-99419.pdf "said that"), “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.”

It added, “Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, 5 designates March 10, 2024, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”

The postponement of the BlackRock’s ETF approval or disapproval date comes a week after it did the same for Fidelity Investments’ spot Ethereum ETF, which it delayed to 5 March.

Read also: [ETH's Path to $10k - The Ethereum 2024 Roadmap](https://www.gate.io/learn/articles/eths-path-to-10k---the-ethereum-2024-roadmap/1696 "ETH's Path to $10k - The Ethereum 2024 Roadmap")

Anyway, BlackRock is used to the SEC’s delaying tactics on approving exchange traded funds and other investment vehicles. In the case of its bitcoin ETF, the SEC took over 6 months to approve it.

According to [Bitcoinworld Media, Investment bank TD Cowen](https://twitter.com/ItsBitcoinWorld/status/1751982211291836772 "Bitcoinworld Media, Investment bank TD Cowen") believes that the SEC will only approve ETH ETFs either in 2025 or 2026.

![](https://gimg2.gateimg.com/image/article/1707407992ETHapproval1.png)
Source: [x.com](https://twitter.com/ItsBitcoinWorld/status/1751982211291836772 "x.com")

In the past, the SEC postponed the approval of various ETH ETF applications. For instance, it delayed Grayscale Investments and VanEck’s Ethereum ETFs applications. Apart from BlackRock, Distributed Capital and Hashdex are the other asset management firms that have applied to launch spot Ethereum ETFs.

One  reason for these delays is the SEC’s requirements for additional disclosures. For a long time, the SEC had opposed spot crypto ETFs for fear of market manipulation and price volatility which could jeopardize investing in Ethereum ETFs.

According to Wu Blockchain, the renowned crypto ETF analyst, Eric Balchunas, thinks that spot ETH ETFs have a 70% chance of approval.

![](https://gimg2.gateimg.com/image/article/1707408004ETHapproval2.png)
Source: [x.com](https://twitter.com/WuBlockchain/status/1745312885298041012 "x.com")

The entire crypto community is waiting for May to find if the SEC will approve or disapprove [BlackRock’s crypto ETF](https://www.gate.io/blog_detail/3499/etf%E7%94%B3%E8%BE%BC-%E5%85%AC%E5%BC%8F "BlackRock’s crypto ETF"). The approval of an ETH ETF in the United States may lead to the greater adoption of ETH than before. We also wait to see the number of investors willing to buy crypto ETFs.

## Conclusion

Peirce, the SEC commissioner, has hinted that the regulatory authority may approve Ethereum ETFs, although she did not specify the time frame. In the meantime, the agency has pushed the decision date of BlackRock’s ETH ETF to May this year. The approval of an ETH ETF in the United States may lead to the crypto asset’s greater adoption.

## FAQs about Spot ETH ETFs

### Will there be an ETF for Ethereum?

There are ETH Futures ETFs that include Global X Ethereum ETP, WisdomTree Physical Ethereum, DDA Physical Ethereum ETP and VanEck Ethereum ETN. However, the crypto market anticipates that the US SEC will approve several spot ETH ETFs between 2024 and 2026.

### What is the best ETF for Ethereum?

The popular ETH futures ETFs include Global X Ethereum ETP, WisdomTree Physical Ethereum, DDA Physical Ethereum ETP and VanEck Ethereum ETN. Based on market capitalization, the Grayscale Ethereum Trust (ETHE) is the biggest ETH ETF on the market.

### Does ETH have an ETF?

ETH has several future ETFs which include Grayscale Ethereum Trust (ETHE), XBT Provider Ethereum Tracker One (COINETH), CI Galaxy Ethereum ETF (ETHX.B) and 21Shares Ethereum Staking ETP (AETH). Most of these ETFs are based in Europe and the United States.

### How to invest in ETH ETF?

Since ETH ETFs are traded on traditional stock exchanges an investor should open an account with a broker. Once he/she funds his/her broker’s account he/she can purchase ETH ETFs of his/her choice.

### Will Ethereum rise again in 2024?

There is a high probability that the price of ETH will rise in 2024. What is not definite at the moment is by what margin it will rise.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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