Bloomberg says the odds of the SEC approving an Ethereum ETF are ‘slim to none’ as new filing details emerge.

Bloomberg says it is “unlikely” that the U.S. Securities and Exchange Commission (SEC) will approve a spot Ethereum exchange-traded fund (ETF) this month as new filing details emerge.

This view comes after analysts discovered details in a filing with the SEC in March that suggested the regulator was considering classifying the largest altcoins by market capitalization as securities.

SEC asks public whether BlackRock’s Ethereum ETF can be registered as a product

Davis Polk and Wardwell Associate Scott Johnsson analyzed documents filed by leading asset manager BlackRock on March 4 to list its spot ETH ETF on Nasdaq. In addition to delaying the deadline for delivering a decision on BlackRock’s application until June, the SEC also solicited public feedback on whether the fund could be filed as a product.

I know this is widely considered a possibility, but this is your official notice that the SEC is considering security concerns for ETH in the upcoming spot ETF order. This question has never been asked in relation to the spot/futures BTC ETF product. pic.twitter.com/TwhqmTnJfC

— Scott Johnson (@SGJohnsson) May 14, 2024

No questions were asked until site approval. Bitcoin ETFAccording to Johnson.

Regulators “may reject these in-kind declarations on the basis that they were improperly filed as commodity-based trust shares,” Johnsson said. said This means that the funds “do not qualify if they hold securities.”

The SEC probably considers Ethereum a “denier security,” Bloomberg ETF analyst Eric Balchunas added in a May 14 X. post. “It was literally buried 50 feet deep in a pile of legal documents.”

The SEC is likely to consider labeling ETH a security.

Bloomberg ETF analyst James Seyffart said the filing raises the possibility of rejection, adding that a request for public feedback could lead regulators to consider ETH. security.

It seems likely that the SEC will reject the Ethereum ETF. #Ethereum It is a security. There’s no guarantee they will do this, but I think this pretty much guarantees that the SEC is at least considering it. (Not groundbreaking, but first time I’ve seen it in a public SEC filing) https://t.co/JK7M9G9Ttu

— James Seyff (@JSeyff) May 14, 2024

VanEck’s spot ETH ETF is the first application that could be rejected, with the SEC’s final decision deadline being May 23.

If regulators decide to reject that application, the commission will likely do the same for spot ETH ETFs filed by Hasdex, ARK21Shares, Invesco Galaxy, Fidelity and BlackRock.s.

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