The future of spot Ether (ETH) exchange-traded funds (ETFs) hangs in the balance as Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), prepares to cast his vote. This is reminiscent of the approval process for spot Bitcoin (BTC) ETFs, which ultimately came down to a 3-2 vote. Gensler’s vote played a crucial role in the approval of spot Bitcoin ETFs earlier this year. Now, the five SEC commissioners will once again vote on VanEck’s spot Ether ETF on May 23. Let’s take a closer look at each commissioner’s stance.
Hester Peirce, also known as “Crypto Mom,” is a strong advocate for digital assets and decentralization in the financial system. While she has not disclosed her position on spot Ether ETFs, she has actively engaged with the Ethereum community, attending events such as ETHDenver.
Caroline Crenshaw, on the other hand, is a vocal critic of the cryptocurrency industry. She strongly opposed the approval of spot Bitcoin ETFs, citing concerns about fraud and market manipulation. There is no evidence to suggest that Crenshaw’s stance has changed regarding spot crypto ETFs.
Mark Uyeda has been critical of the SEC’s regulatory approach towards cryptocurrencies, particularly its “regulation by enforcement” strategy. He disagreed with the SEC’s denial of a Coinbase petition and expressed concerns about the decision-making process for spot Bitcoin ETFs. However, it remains unclear whether Uyeda’s concerns will apply to spot Ether ETFs as well.
Jaime Lizárraga voted against approving spot Bitcoin ETFs and did not issue a statement following the decision. He believes that Bitcoin has not fulfilled its promise as an alternative to traditional finance and has expressed opposition to the SEC’s “regulation by enforcement” approach.
Lastly, Gary Gensler, who voted in favor of spot Bitcoin ETFs earlier this year, has faced speculation about his motives. Some believe his decision was influenced by Grayscale’s successful appeal against the SEC. It remains to be seen how Gensler will approach the current wave of Ether ETF applications.
In addition to the commissioners’ votes, there are other factors at play. An investigation into Ether’s status as a potential security is being led by SEC’s Gurbir Grewal. Some fund managers have also expressed frustration with the SEC’s handling of spot Ether ETFs, anticipating a denial this week.
Despite these challenges, there is still a possibility that at least one spot Ether ETF could be approved on May 23. Bloomberg ETF analysts predict a 25% chance of approval, a significant decrease from the 70% chance predicted in January.
Ultimately, the fate of spot Ether ETFs rests in the hands of the SEC commissioners, particularly Gary Gensler, who holds a pivotal vote.