HomeCryptoSEC could consider Ethereum a security very soon, analysts say

SEC could consider Ethereum a security very soon, analysts say

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Van Buren Capital general partner and financial lawyer Scott Johnsson on Tuesday discovered an overlooked detail in the presentation The U.S. Securities and Exchange Commission (SEC) announced in March that the SEC could consider Ethereum (ETH) a “security,” ahead of expected denials of Ethereum spot exchange-traded funds later this month.

In a publication of “Commodity-based trust shares, given the nature of the underlying assets held by the trust.”

“The obvious purpose is to potentially deny it on the basis that these spot presentations are incorrectly presented as commodity-based trust shares and do not qualify if they hold a security.” Scott Johnsson indicated.

Excerpt from the SEC filing, analyzed and noted in X by Scott Johnsson. Source: SEC

Furthermore, Johnsson believes that this is official proof that the SEC has already decided on the impending verdict of denying ETH spot ETFs. This is because, according to Johnsson, these types of questions were never asked when considering Bitcoin (BTC) spot ETFs.

“I am aware that this is widely considered a possibility, but this is your official notice that the SEC is considering the security issue for Ethereum, in this upcoming spot ETF application.” Scott Johnsson expressed. “Please note that this question was never asked regarding a BTC spot/futures ETF product,” he added.

Chances of SEC approval of Ethereum ETFs shrink

On the other hand, Bloomberg ETF analyst “Eric Balchunas” supported the analysis carried out by Scott Johnsson, pointing out in X that such terms were “buried 50 feet deep in a pile of legal jargon.”

“The SEC asked commenters on ETH spot ETFs whether these applicants had properly submitted their proposals to list ETFs as commodities. “This shows that the SEC may be considering ETH a security in its denial.” Said Eric Balchunas in X. “Our chances of approval remain the same: slim to none,” he added.

Additionally, also popular Bloomberg ETF analyst James Seyffart agreed with Balchunas and Johnsson in the X thread.

«It seems that the chances of the SEC denying Ethereum ETFs on the grounds that Ethereum is a security have increased. “It’s not a guarantee that they will do it, but I think it almost guarantees that the SEC is at least considering it.” James Seyffart expressed.

It should be noted that the presentation analyzed by Johnsson delayed the deadline for the decision on “BlackRock” Ethereum ETFs until June. In addition, the US regulator also requested “public comments” at that time on whether this type of investment vehicle could be presented as a “commodity.”

Additionally, Nate Geraci, president of “The ETF Store,” said on approved Ethereum futures ETFs.”

It is important to note that the SEC has a deadline of May 23 and 24, to decide whether to approve the Ethereum spot ETF applications submitted by “VanEck” and “ArkInvest/21 Shares”, respectively.

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