Altcoin News

Ethereum ETFs Risk Denial By SEC, Bloomberg Analyst Warns

Bloomberg analyst James Seyffart predicts higher chances of SEC rejecting Ethereum ETFs, citing potential classification of Ethereum as a security.
Published by
Ethereum ETFs Risk Denial By SEC, Bloomberg Analyst Warns

Highlights

  • Bloomberg analyst James Seyffart highlights increased odds of SEC rejecting Ethereum ETFs, considering Ethereum's classification as a security.
  • Ethereum developer Consensys files a lawsuit urging SEC not to label ETH as a security, complicating the regulatory landscape.
  • Polymarket data shows rising odds of Ethereum ETF approval amid SEC's critical scrutiny and upcoming decisions on major applications.

Recent developments indicate that the approval of Ethereum Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) may face significant hurdles. Bloomberg analyst James Seyffart and finance lawyer Scott Johnson have provided insights into the regulatory challenges and market implications surrounding these proposed ETFs.

Advertisement

James Seyffart’s Prediction and Regulatory Considerations

James Seyffart, a top Bloomberg analyst, has highlighted the increasing likelihood of the SEC rejecting Ethereum ETFs. He suggests that the SEC is considering classifying Ethereum as a security, a significant move that could impact the approval process for these financial products. Although this is not a definitive outcome, the fact that the SEC is contemplating this classification is notable. This marks one of the first times such a possibility has been mentioned in public SEC documents, indicating heightened regulatory scrutiny.

While this possibility has been widely speculated, it is now officially on the table. Historically, the SEC has not raised similar concerns for Bitcoin ETFs, whether spot or futures. The Commodity Futures Trading Commission (CFTC) has consistently considered Ethereum a commodity, further complicating the regulatory landscape. Meanwhile, Ethereum developer Consensys has taken legal action against the SEC, urging the agency not to label ETH as a security. This lawsuit underscores the significant stakes involved and the diverse perspectives within the crypto industry regarding Ethereum’s classification.

Also Read: CoinDCX DeFi Arm Okto To Launch Native Token With Massive Airdrop

Advertisement

SEC’s Official Notice and Market Implications

The U.S. Securities and Exchange Commission has issued an official notice regarding the approval of Ethereum Exchange-Traded Funds (ETFs). This notice, unveiled by finance lawyer Scott Johnson, highlights the critical scrutiny and potential obstacles the proposed ETF faces. Johnson emphasized the SEC’s consideration of Ethereum’s classification as a security in the upcoming spot ETF order.

Decisions on applications such as BlackRock iShares Ethereum ETF and Fidelity Ethereum ETF are anticipated, with deadlines looming in August. Despite the regulatory uncertainty, Polymarket data shows that the odds of Ethereum ETF approval have increased to 13% by May 31, up from a low of 6% on May 6. The SEC’s reluctance to engage in constructive discussions with Ether ETF issuers has led to disappointment within the crypto community, impacting overall market sentiment. However, ongoing meetings between ETF applicants and SEC staff, reported by Fox Business journalist Eleanor Terrett, suggest that negotiations continue, potentially influencing future outcomes in this regulatory debate.

Also Read: Bitcoin Price: BTC To Face $2.7 Billion Liquidation If Price Hits This Level

Advertisement

Share
Coingapestaff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Crypto ETFs Approval Faces Uncertainty as Government Shutdown Looms, Bloomberg Analyst Says

Bloomberg analyst James Seyffart has shared his thoughts on a potential approval of the pending…

September 29, 2025
  • 24/7 Cryptocurrency News

Fed’s Hammack Backs Restrictive Policy Over Rate Cuts Amid Inflation Concerns

Cleveland Federal Reserve President Beth Hammack has advocated for a restrictive monetary policy amid growing…

September 29, 2025
  • 24/7 Cryptocurrency News

Fed Governor Chris Waller Champions Stablecoins as a Tool for Cheaper Global Payments

Federal Reserve Governor Chris Waller has said that stablecoins and public blockchains could cut cross-border…

September 29, 2025
  • Blockchain News

LBank Celebrates 10 Years With Bold Achievements and Global Expansion

Crypto exchange LBank has announced a historic partnership as the regional sponsor of the Argentina…

September 29, 2025
  • Bitcoin News

Breaking: Strategy Buys 196 Bitcoin as Michael Saylor Says ‘Always Be Stacking’

Strategy, previously MicroStrategy, has announced another weekly Bitcoin purchase, despite the decline in the flagship…

September 29, 2025
  • 24/7 Cryptocurrency News

French Finance Insider Buys $48.9M in XRP, Expert Hints at Bullish Move Ahead

A French finance insider has purchased $48 million in XRP in a new move, sparking…

September 29, 2025