📌$ETH 3 days left for Ethereum spot ETF review: Will the SEC technically reject it? Will the issuer file a lawsuit if rejected? $BTC $SOL

🔺Whether the Ethereum spot ETF is approved will soon reach a critical moment on the 23rd

🔺 The critical moment for whether the U.S. Securities and Exchange Commission (SEC) approves the Ethereum spot ETF will be on the 23rd of this week. The SEC needs to make an initial and final decision on the applications of VanEck and Ark/21Shares (the 23rd and 24th respectively). Grayscale’s final decision needs to be made on the 30th, but this time the market is not as optimistic as before about the Bitcoin ETF. Bloomberg quoted people familiar with the matter as reporting on the 18th that some fund companies expected that their applications would be rejected because the applicant Private contacts with the SEC are not as frequent as before the approval of the Bitcoin spot ETF in January. Katherine Dowling, general counsel of Bitwise, which filed the Ethereum spot ETF application, pointed out that the market has generally expected to receive a rejection decision.

🔺 Will you file a lawsuit if rejected?

Neena Mishra, director of ETF research at Zacks Investment Research, believes that even if the SEC really refuses, the issuer is unlikely to file a lawsuit. They may be inclined to resubmit and have more communications with the SEC in the next 240 days.

The legal process is costly, and an Ethereum spot ETF is likely to attract far less investor interest than a spot Bitcoin ETF. Additionally, as the election approaches, issuers may prefer to wait for the results, hoping for a more crypto-friendly SEC chair

The biggest problem at the moment is that the SEC has not clearly determined that Ethereum is a security or commodity. Van Buren Capital general partner Scott Johnsson pointed out that the SEC is still considering this issue in a March 8 filing.

When conducting an opinion poll on BlackRock’s Ethereum spot ETF application, the SEC asked Nasdaq in a filing whether it “takes into account the nature of the underlying assets held by the trust” and asked if “its PoS mechanism and centralized control by a few individuals or entities", whether the arguments supporting the listing of a Bitcoin spot ETF apply to Ethereum.