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Ether ETFs & SEC: Commissioner Peirce’s Regulatory Vision

In the fast-paced realm of cryptocurrency investments, Ethereum exchange-traded funds (ETFs) are in the spotlight. SEC Commissioner Hester Peirce, nicknamed “Crypto Mom,” discussed the regulatory landscape in a Coinage Media interview. Peirce highlighted the spot Ether ETF approval process, detailing the SEC’s approach and providing insights into the potential future of crypto-based ETFs.

Ether ETFs & SEC: Commissioner Peirce's Regulatory Vision
Source: Freepik

No Lawsuit Needed for Ethereum ETF Approval

In a significant departure from the approach to spot Bitcoin ETFs, Commissioner Peirce highlighted that the SEC won’t require a lawsuit to approve spot Ether ETF applications. She emphasized the notion that “We shouldn’t need a court to tell us that our approach is arbitrary and capricious for us to get it right,” demonstrating a commitment to a more transparent and straightforward approval process.

Key Players and Their Stakes

While handling spot Ether ETFs, the SEC faces submissions from major players like BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex. Bloomberg’s ETF analyst, Eric Balchunas, predicts a 70% likelihood of spot Ether ETF approval by May. This reflects the industry’s optimistic outlook on a favorable outcome.

Precedents from the Spot Bitcoin ETF Saga

Peirce recognized the precedent set by spot Bitcoin ETF approvals, underlining the distinct circumstances of each ETF application. Emphasizing the SEC’s dedication to incorporating lessons from prior decisions, she aims for a consistent and fair approval process.

What to Expect in the Coming Months

Approaching crucial deadlines, the SEC must decide on spot Ether ETF applications from VanEck, ARK 21Shares, Hashdex, Grayscale, and Invesco between May 23 and July 5. Fidelity and BlackRock’s applications have deadlines in early August, adding anticipation to an already dynamic regulatory landscape.

Optimism vs. Skepticism

Balchunas is optimistic about spot Ether ETF approval, but Morgan Creek Capital’s CEO Mark Yusko remains skeptical, citing the SEC’s perceived hostility towards the crypto industry. The divergence in industry opinions highlights the complexity and uncertainty surrounding the SEC’s stance on crypto- based ETFs.

Gensler’s Cautious Stance on Crypto Asset Securities

SEC Chair Gary Gensler’s cautious stance echoes throughout the regulatory landscape. Despite recent spot Bitcoin ETF approvals, Gensler clarified that this doesn’t indicate a broad willingness to approve listing standards for crypto asset securities. The SEC remains cautious in its approach to the evolving crypto market.

SEC’s Regulatory Delay and Missed Opportunities

Commissioner Peirce didn’t shy away from expressing frustration over the SEC’s delayed approval of crypto-based ETFs. She criticized the regulatory body for waiting for court decisions to spur action. Suggesting a more consistent approach, she believes it could have led to earlier approvals.

The Uncertain Future of Spot Ether ETFs

As the crypto market continues to evolve, the future of spot Ether ETFs remains uncertain. While Commissioner Peirce urges a streamlined approval process, Chair Gensler’s caution reminds of unique challenges in crypto asset regulation. Recent spot Bitcoin ETF approvals set a precedent, but the path for spot Ether ETFs remains uncertain.


In a rapidly evolving crypto landscape, Commissioner Hester Peirce’s insights provide a valuable perspective on the SEC’s approach to Ethereum ETFs. Crucial deadlines approach, and the crypto community anticipates regulatory decisions shaping the future of institutional involvement and investor confidence in the growing crypto market.

January 24, 2024 at 9:00 pm

Updated January 24, 2024 at 9:00 pm


Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)


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