Summary
TLDR: Crypto attorney Jake Chervinsky believes the SEC will likely reject Ethereum ETF applications due to political pressure and market sentiment concerns. BlackRock’s interest in an Ethereum ETF does not guarantee approval, as the SEC may prompt them to withdraw their applications.
Key Points
1. Crypto attorney Jake Chervinsky believes that pending applications for an Ethereum ETF may face rejection from the SEC due to political pressure on the financial regulator.
2. Chervinsky argues that the SEC has a history of adopting legally dubious stances to align with political agendas, indicating that the federal agency may lean on similar reasoning for denial of Ethereum ETFs.
3. Despite BlackRock’s interest in an Ethereum ETF, Chervinsky warns against assuming that this guarantees approval from regulators, suggesting that the SEC could prompt BlackRock and other issuers to withdraw their applications for various reasons.