Blockchain lawyer Jake Chervinsky, serving as the chief legal officer for the venture capital fund Variant, shared his views on the likelihood of an ETH ETF being approved this year. Following the approval of spot Bitcoin ETFs in the United States, the US Securities and Exchange Commission (SEC) faces significant “political pressure,” posing a major obstacle for Ethereum investors eagerly awaiting such an investment vehicle.
Political Barriers and the SEC’s Perspective
Jake Chervinsky from Variant expresses his doubts about the approval of spot Ethereum-based exchange-traded funds (ETFs) by 2024. According to him, political factors have cast a shadow over the possibility of an ETH ETF approval this year by putting pressure on the SEC leadership.
Despite the US court’s role in the launch of spot Bitcoin ETFs in January 2023, the SEC, as highlighted by Chervinsky, is facing intense “political pressure” that complicates the approval process for similar products.
Collaboration and Withdrawal Possibilities
Chervinsky emphasizes the collaboration between the SEC and ETF applicants, including BlackRock, in the approval of Bitcoin ETFs. To maintain compliance with the SEC, he suggests that these organizations could withdraw all ETH ETF applications if requested.
Market dynamics dominated by speculative fervor and increasingly hostile conditions make the prospects for an Ethereum ETF even more complicated. Despite the difficulties, Ethereum has witnessed a significant price increase of 30% and a recent peak surpassing $3,500 since the approval of Bitcoin ETFs.
However, Chervinsky maintains his optimism about the ultimate approval of ETH ETFs, claiming it’s a matter of “if not now, then when.” This sentiment is consistent with previous analyses, including Bloomberg analyst James Seyffart, who anticipates a delay in the launch of Ethereum ETFs, indicating no likelihood of an Ethereum ETF this month.
Looking at the price of the cryptocurrency Ethereum at the time of writing, we see it trading at $3,425. Ethereum had risen above $3,500 during the week. On Wednesday, ETH also experienced a drop following an instantaneous decline in Bitcoin, with its price falling below $3,200.
