DL News has compiled the following three reasons why the US Securities and Exchange Commission (SEC) will not approve an Ethereum spot ETF.
- The definition of Ethereum is still unclear.
SEC Chairman Gary Gensler has been vague about whether Ethereum is a commodity or not. What is confusing is that the SEC approved an Ethereum futures ETF last October. - Potential political backlash.
The SEC was criticized by Democratic Senator Elizabeth Warren for approving a bitcoin spot ETF. "Influential anti-crypto lawmakers like Elizabeth Warren are furious with the SEC for approving a BTC spot ETF, and they're moving to prevent the same thing from happening to ETH," said Fox Business reporter Eleanor Terrett. - Less litigation risk than bitcoin.
Grayscale previously sued regulators to appeal the denial of its GBTC-to-spot ETF conversion and won. It is less likely to do so with Ethereum.
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