- SEC Commission Hester Peirce expects an improved consideration process for Ethereum ETFs.
- Hester Peirce expressed frustration with the “Circus-like” Bitcoin ETFs approval process.
- Industry experts have shared differing opinions on the likely timeline of approval.
Ethereum ETFs have recently become a hot topic following the historic approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Despite SEC Chair Gensler’s assertion that the Bitcoin ETF approval does not signify the embrace of crypto assets, investors are optimistic about the approval setting a precedent substantial enough to impact its consideration of spot Ethereum ETFs.
As the industry anticipates the potential outcome, “crypto mom” Hester Peirce, renowned for her liberty-focused approach to the industry, has offered insights into the commission’s decision-making process.
Ethereum ETF Won’t Get ‘Circus-Like’ Approach
SEC Commissioner Hester Peirce has expressed optimism about a balanced decision-making process for Ethereum ETF, asserting that the regulatory commission is unlikely to adhere strictly to its traditional stringent approach.
Peirce emphasized that the “circus-like” consideration process witnessed for Bitcoin ETFs, characterized by legal battles, extensive delays, and security breaches, will not reoccur in the case of Ethereum ETFs.
“We shouldn’t need a court to tell us that our approach is arbitrary and capricious in order for us to get it right,” she stated in an interview with Zack Guzman.
Reflecting on her past frustrations with the delays in approving Bitcoin ETFs, Peirce underscored the importance of providing choices to investors in the spirit of liberty and asserted the need for clear thinking and consideration in enforcing regulations on the industry.
“There are lots of things that we can draw on, and I hope that we draw in more than just our general skepticism of anything that touches on crypto, which seems to be how we’ve approached a lot of these problems in the past,” she emphasized.
Hester Peirce’s sentiments align with industry predictions on the likelihood of an approval.
Ethereum ETF: Approval or Not?
Business journalist Eleanor Terrett has shared varying perspectives on whether the SEC will approve Ethereum ETFs and when the regulatory decision is expected.
Terret stated that there is prevailing optimism among issuers and analysts, forecasting the approval and launch of Bitcoin ETFs to influence the SEC’s decision-making process regarding Ethereum ETFs positively.
Reporting on the timeline for a potential $ETH ETF approval has turned up a plethora of different takes from ETF issuers, investment management firms and sources close to the @SECGov.
✨One $BTC Spot ETF issuer with an ETH Spot ETF application says they’re confident the…
— Eleanor Terrett (@EleanorTerrett) January 23, 2024
Contrasting opinions, however, challenge the optimism. Other predictions suggest a “hard no” within the regulatory commission, indicating internal resistance to endorsing the ETFs.
ETF analyst James Seyffart anticipates a 5-month consideration process for the SEC and has predicted May as a plausible timeframe for the commission’s verdict.
On the Flipside
- While Hester Peirce’s comments express optimism for Ethereum ETFs, they do not guarantee the SEC’s approval.
- The SEC recently extended its decision deadline for Fidelity’s Ethereum ETF application by 45 days.
- BlackRock CEO Larry Fink is bullish on the potential of Ethereum, further fueling expectations for an imminent ETF approval.
Why This Matters
Despite varying forecasts on the fate of Ethereum ETFs, the final decision lies with the SEC. Given the unpredictability of the outcome, it is important to maintain balanced expectations to avoid overestimation or disappointment.
Find out more about the SEC hack prior to Bitcoin ETF approval:
SEC Claims ‘SIM Swap’ Attack Behind X Account Breach
Discover how to stay safe from SIM swap attacks:
How to Prevent a SIM Swap Attack as SEC Falls Prey