BlackRock’s challenge to the SEC’s reluctance to approve an Ethereum ETF raises questions about the treatment of spot-crypto ETFs compared to their futures counterparts. Market analysts are optimistic about a potential breakthrough, with a 90% likelihood of SEC approval.
In a bold move, BlackRock has taken on the U.S. Securities and Exchange Commission (SEC), challenging the disparity in treatment between spot-crypto Exchange-Traded Funds (ETFs) and their futures counterparts. The crux of the matter is the SEC’s hesitation to approve spot-crypto ETFs due to concerns about regulatory robustness and protective measures.
A Level Playing Field?
BlackRock argues that the SEC’s distinction between futures and spot ETFs does not hold up in the case of Ethereum-based ETFs. According to the financial giant, both these categories draw from the same underlying market. Moreover, they point out that the SEC places confidence in the market surveillance conducted by the Chicago Mercantile Exchange, which further raises questions about the denial of an Ethereum spot ETF application.
Market analysts are keeping a close watch on this development, with speculations running high about the SEC’s potential approval of a spot crypto ETF. Bloomberg experts are notably optimistic, giving it a substantial 90% likelihood, and there’s a chance this approval could materialize before January 10 next year.
The battle between BlackRock and the SEC represents a broader trend where institutional giants are seeking exposure to digital assets. The resolution of this challenge could serve as a litmus test for the wider acceptance of cryptocurrencies by traditional financial powerhouses.