Spot Ether ETF Won’t Need a Lawsuit for Approval: SEC Commissioner

The approval of a spot Ether exchange-traded fund (ETF) in the United States by the Securities and Exchange Commission (SEC) will not need a lawsuit, said SEC Commissioner Hester “Crypto Mom” Peirce. 

In an interview with Coinage Media, Peirce said that asset management firms looking to provide spot Ether ETFs in the US will not need to sue the SEC, like in the case of a spot Bitcoin ETF.

Courts Won’t Need to be Involved for Spot Ether ETF Approval

The SEC commissioner is referring to the lawsuit filed by digital asset management firm Grayscale in 2023 after its request to turn its flagship product, GBTC, into a spot Bitcoin ETF was turned down by the regulator. 

“We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right,” Peirce noted in the interview on January 24, while adding:

“That’s not how we’re going to do our approvals.”

SEC to Apply Learnings from Spot BTC ETF

Peirce, known as ‘Crypto Mom’ for her sympathetic stance on digital assets, noted that the SEC would apply the learnings from its legal battle against Grayscale while considering spot Ether ETF applications. 

“There’s a lot of work that goes into getting an exchange-traded product ready for market, including making sure that the disclosures are lining up with how the product actually works,” Peirce said, while further adding: 

“Having heard from a court that the approach we were taking was wrong […] I think that kind of a lesson will certainly stick with us.”

Multiple Spot Ether ETF Applications Are Pending

BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are some of the top asset management firms that are eyeing the approval of a spot Ether ETF in the United States.

It is crucial to note that the SEC has to take decisions on VanEck’s application by May 23, ARK 21Shares by May 24, Hashdex by May 30, Grayscale by June 18, and Invesco by July 5.

Delay in Approvals

As reported earlier by TheCoinRise, the regulator delayed the spot Ether ETF application submitted by Fidelity by another 45 days “so that it has sufficient time to consider the proposed rule change and the issues raised.”

Fidelity and BlackRock’s applications must be decided by August 3 and August 7.