Three Reasons Why the US SEC Will Not Approve an ETH Spot ETF
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.
