Jake Chervinsky, Chief Legal Officer at Variant Fund, has expressed skepticism about the SEC’s approval of spot Ethereum ETFs in the U.S. by the May deadline. Despite the successful launch of spot Bitcoin ETFs in January, Chervinsky highlighted the complex legal and policy environment in Washington, D.C. as a significant factor that could potentially lead to the SEC denying the applications or requesting their withdrawal.

SEC Chair Gary Gensler has made it clear that the approval of Bitcoin ETFs should not be seen as a broader acceptance of cryptocurrency ETFs. Gensler emphasized the unique status of Bitcoin compared to other cryptocurrencies, which he considers securities.

“Blackrock always wins” is a lazy bull take. – Jake Chervinsky

The conversation surrounding Ether ETFs has gained momentum with applications from major financial firms like BlackRock, Fidelity, and Franklin Templeton. Bloomberg ETF analyst Eric Balchunas suggested a 70% chance of approval by the May deadline, but Chervinsky remains skeptical, criticizing optimistic views on BlackRock’s influence.

Opinions within the industry vary, with some analysts downplaying the significance of Ether ETFs compared to Bitcoin counterparts. ETF Store President Nate Geraci believes the impact of Ether ETFs could be underestimated due to the substantial market cap of Ether (ETH) relative to Bitcoin (BTC).

Discussions also focus on the timing of potential approval, with some, like Travis Kling of Ikigai Asset Management, suggesting that August might be a more realistic timeline for approval.

I don’t think there’s much of an expectation for a May approval. That’s not at all what’s priced in here. You haven’t seen the type of movements you’d expect between the filers and the SEC if it was going to be May. Folks are more circled up around the Aug deadline. – Travis Kling

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