Fund Managers Brace for SEC Rejection of Ether-ETF Applications
- Most involved expect disapproval order, Bitwise lawyer says
- SEC faces May 23 deadline to reject or approve one fund
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Investment companies hoping to launch the first exchange-traded funds based on the Ether cryptocurrency are bracing for disappointment since the Securities and Exchange Commission has yet to signal it’s prepared to green light the products.
After months of silence, the US regulator is poised to announce a decision on at least one application for an ETF that invests directly in Ether, the second-largest cryptocurrency, by next week. Some fund companies expect a rejection because their private dialog with the SEC hasn’t been as robust as it had been prior to the approval of spot-Bitcoin ETFs in January, according to two people familiar with the matter, who asked not to be named discussing private conversations.