Jake Chervinsky: It's not worth waiting for the launch of exchange—traded funds on the air
A lawyer defending the interests of crypto companies shared his pessimistic views on the launch of spot ETFs on ether this year.
Jake Chervinsky is confident that political pressure may be exerted on the US Securities and Exchange Commission (SEC), and this will prevent the regulator from approving exchange-traded funds linked to the second largest cryptocurrency by market capitalization.
"Many members of the crypto community remain optimistic about the imminent launch of ETFs on the air, but I am not sure that this will happen in 2024. The American regulator received a lot of criticism from politicians for approving the bitcoin ETF, although in fact the court forced the Commission to do so. Now the market is controlled by animal instincts, and ETH-ETFs will only add fuel to the fire," the lawyer wrote in X.
Major investment companies BlackRock, Fidelity, Grayscale, VanEck, Ark, 21Shares, Invesco, Galaxy, Hashdex and Franklin Templeton have already submitted applications to the agency to launch ETFs linked to ether. Despite delays in deciding on the applications, the companies hope that the SEC will approve them by May. The lawyer is confident that if the SEC decides to reject all applications for ETFs, the regulator will have enough arguments to justify its decision.
"The SEC's legal arguments are likely to stand the test of ridicule, even if they are flawed. After all, we know that the Commission is ready to take the wrong legal position in court in order to satisfy political priorities. Blackrock's near-flawless results in obtaining approval for an ETF launch application are largely due to its cooperation with the SEC. If the regulator asks Blackrock and other companies to withdraw from the "ETF game on ETH," I bet they will do it," says Jake Czerwinski.
Source: https://bits.media/dzheyk-chervinski-zhdat-zapuska-birzhevykh-fondov-na-efir-ne-stoit/
