Approval of Ethereum ETF in doubt, issuers VanEck and CoinShares also lack confidence

Since the SEC approved a Bitcoin spot ETF in January, the crypto community's enthusiasm for an Ethereum ETF has been steadily increasing. However, not only are the probability predictions from Bloomberg analysts decreasing, even the issuers who have applied for an Ethereum ETF are losing confidence.

Bloomberg Analyst: Probability of Ethereum spot ETF approval in May drops to 30%

VanEck Aware Ethereum ETF Could Be Rejected?

ETF issuer VanEck CEO Jan van Eck attended the Paris Blockchain Week and in an interview with CNBC, he mentioned that VanEck and Ark are the first issuers to apply for an Ethereum spot ETF, but they could also be the first to be rejected.

He stated:

The regulatory process is that the regulator comments on your application, and there have been weeks of this process before a Bitcoin ETF is approved. Now, in the case of Ethereum, the critical moment is approaching.

SEC Chairman Gary Gensler has repeatedly stated in public that only Bitcoin meets the criteria for securities, emphasizing that the vast majority of crypto assets are considered investment contracts and are thus subject to federal securities laws, making the situation more complex for an Ethereum ETF.

Rumors have recently surfaced that Ethereum is under investigation by the SEC.

Fortune: Ethereum Under Close Scrutiny by the SEC, Attempting to Classify ETH as a Security

Proof of Stake Adds to the Difficulty

CoinShares CEO Jean-Marie Mognetti also told CNBC that they are closely monitoring the approval status of an Ethereum ETF.

CoinShares did not apply for an Ethereum spot ETF until the last three months before approval last year, participating in the competition for a Bitcoin ETF and successfully applying at the last minute. However, Jean-Marie Mognetti is equally pessimistic about the possibility of an Ethereum spot ETF being approved in the short term.

He pointed out:

CoinShares did not apply for an Ethereum spot ETF, and I don't think there will be any approvals in the second half of the year. Proof of Stake (PoS) may be difficult to obtain approval from the SEC. From a securities law perspective, the SEC has not questioned Bitcoin's Proof of Work (PoW).

CNBC reached out to Ark Invest for comment but did not receive a response.