There’s an ongoing investigation into Ether’s status as a potential security.
Going by the events that preceded the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in January, the fate of spot Ether ETFs might also come down to a single vote from one man. That is, Gary Gensler, the chair of the United States Securities and Exchange Commission.
As it were, a five-commissioner panel decided upon the fate of Bitcoin ETFs in January. However, the move to approve did not come until an ultimate Gensler decision. Crypto-friendly commissioners, Hester Peirce and Mark Uyeda, had voted to approve ETFs, albeit unsurprisingly. Commissioners Caroline Crenshaw and Jaime Lizárraga, however, voted against them, causing a tie.
Interestingly, in what was an unexpected decision, Gensler voted in support, leading many to believe that there would be no spot Bitcoin ETFs today, if it weren’t for his crucial vote on January 10, 2024.
Spot Ether ETFs: Here’s What to Expect
On Thursday, May 23, the same set of people are set to decide on VanEck’s spot Ether ETF. Therefore, all eyes are on the five commissioners as they cast their votes either in support of or against the approval.
As was with the earlier votes, Hester Peirce, also known as “Crypto Mom” and Mark Uyeda have publicly shown their interest in crypto. Although Hester hasn’t confirmed how she’ll vote on the spot Ether ETFs, she’s known to be a part of the Ethereum community. At least, her attendance and speech at the ETHDenver in Colorado in late February suggest this.
Uyeda and Peirce have criticized the SEC on several occasions. While Hester called out the agency for its rather “unproductive” and “pointless” approach to regulation of the cryptocurrency industry, Uyeda declared that he is not a fan of the agency’s “regulation by enforcement.”
Caroline Crenshaw, also a member of the panel, remains a strong critic of the cryptocurrency industry. That explains her stance back in January that by approving the Bitcoin products, the SEC would be failing to protect US investors. Since then, she has shown no reason to suggest that she has had a shift in perspective.
Jaime Lizárraga is the only Commissioner who voted against approving the spot Bitcoin ETFs and didn’t issue any explanatory statement.
Gary Gensler did vote to approve spot Bitcoin ETFs in January. However, many believe that his decision was influenced by Grayscale winning an appeal against the regulator a few months earlier. For this reason, it might be safe to expect anything from Gensler as regards the current string of Ether ETF applications.
Fingers Crossed
Additionally, there’s an ongoing investigation into Ether’s status as a potential security. That is not to mention the claims by some fund managers that the SEC has not really been engaging in spot Ether ETFs.
Whatever happens, it will be interesting to see whether the US will take a cue from Hong Kong by approving spot Ether ETFs.
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