From Investing.com:

Asset managers are preparing to launch a new wave of crypto ETFs after the SEC approved bitcoin ETFs. With 12 firms, including Grayscale and Invesco, applying for 25 next-generation crypto products, there is hope for mainstream crypto adoption. Despite SEC skepticism, ether’s price rise and demand indicate investor optimism for future approvals.

The SEC’s reluctance with complex crypto products raises doubts on swift approval for the next wave of ETFs. Chair Gary Gensler’s warnings of high risk with bitcoin ETFs may foreshadow a cautious approach towards new products. Legal complications with ether’s regulatory status add further delayer to product approval and require SEC scrutiny.

Uncertainty looms over the SEC’s approval of leveraged and inverse crypto ETFs, as past incidents of market volatility have resulted in significant investor losses. The agency is due to review its ETF risk rules this year, adding pressure for safe product listings. Despite a cautious approach, the SEC aims to avoid outright rejection and instead opts for delays to scrutinize applications.

Approval for spot ether ETFs remains uncertain as the SEC faces a deadline for decisions. With VanEck and Grayscale waiting for SEC rulings on their applications, the fate of spot ether ETFs hangs in the balance. Gensler’s determining vote could sway approval decisions, emphasizing the importance of regulatory clarity for the new products.

Legal experts anticipate challenges in Ethereum’s classification as a commodity or security, adding complexity to the SEC’s decision-making process. Gensler’s scrutiny of ether’s unique blockchain structure raises questions on its security status. As the SEC weighs investor protection and product viability, the uncertainty on approving ether ETFs persists amidst evolving crypto regulations and market demands.



Read more at Investing.com: US SEC expected to drag its feet on new wave of crypto ETFs By Reuters