2024-03-28 15:03:41
- BlackRock CEO said Ethereum ETF likely to be approved despite ETH designation.
- Hopeful issuers are adding “bets” to “push the SEC.”
Larry Fink’s recent vision of Blackrock Etereum [ETH] The approval of the ETF has many commentators speculating regarding possible outcomes.
In a recent interview On FOX Business, Larry Fink was asked if an ETH ETF can be started even if ETH is designated as a “security.” To which he replied,
“Yes I think so”.
He added that the designation or categorization of ETH will not prejudice the approval of the ETF.
Fink’s revelation has sparked new speculation.
ETH ETF approval in May
ETF Store’s Nate Geraci reacted to Fink’s revelation on X (formerly Twitter) and shared his opinion;
“Just reading black and white lines and speculating, it sounds like the SEC is seriously trying to classify ethics as security. If so, it’s hard to be optimistic regarding the ETF’s approval in May.
That said, Fink says the SEC might still allow post-security classification of spot eth ETFs.
Another source of confusion regarding the approval of the ETH ETF is the addition of “staking” in recent amendments by potential issuers.
On March 27, Fidelity amended its ETH ETF filing to include “staking” for users. He presentation fixed;
“As a result of any staking activity in which the trust may engage, the trust expects to receive certain ether staking rewards, which may be treated for federal income tax purposes as income to the trust.”
Like Fidelity, Grayscale’s ETH ETF presentation included betting.
However, these trends are confusing given the SEC’s stance on gambling, as seen during the 2023 Kraken lawsuit.
During the Kraken fine, the SEC warned that,
“When investors provide tokens to betting-as-a-service providers, they lose control of those tokens and take on risks associated with those platforms, with very little protection.”
Eric Balchunas, Bloomberg ETF Analyst complained that the reason hopeful issuers are adding bets on filing is to,
“To give the SEC a boost, let’s hope the squeaky wheel gets greased. And I respect the hustle and bustle, but I think the SEC’s mind is made up on this.”
Bloomberg ETF analyst has maintained a pessimistic 25% chance of approval in May for ETH ETFs.
However, it is worth noting Fink’s positive inclination towards approval, even if ETH is classified as a “security.” If Fink’s stance is successful, we might eventually have an ETH ETF either way.
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