Variant Chief Legal Officer Casts Doubt on Approval of Ethereum Spot ETFs by SEC in 2024

In recent statements, Jake Chervinsky, the Chief Legal Officer at Variant, a leading cryptocurrency company, has cast doubt on the likelihood of the Securities and Exchange Commission (SEC) approving Ethereum (ETH) spot Exchange-Traded Funds (ETFs) within the current year.

Chervinsky’s remarks come at a time of intense activity within the cryptocurrency markets, where the introduction of an Ethereum ETF is anticipated to further invigorate trading dynamics.

He highlighted the contentious aftermath following the SEC’s green light for Bitcoin (BTC) ETFs, stressing that the approval was largely influenced by judicial pressures and stirred significant debate within regulatory circles.

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While the prevailing market sentiment is largely characterized by fervent speculation, Chervinsky cautioned that the introduction of an ETH ETF could exacerbate this trend, as emotions often dictate market fluctuations, leading to periods of heightened buying or selling activity.

Chervinsky suggested that the SEC may employ legal arguments to justify the denial of an ETH ETF, even if such justifications lack substantive merit. He pointed to the SEC’s track record of championing contentious legal stances in pursuit of broader regulatory objectives.

Despite Blackrock’s historical success in securing ETF approvals, Chervinsky insinuated that this achievement was not solely attributable to the firm’s prowess but also owed to its collaborative rapport with the SEC. He speculated that if prompted, Blackrock and other ETH ETF sponsors might opt to withdraw their applications in response to regulatory overtures.

Notwithstanding his reservations regarding the immediate timeline, Chervinsky remained optimistic about the eventual approval of an ETH ETF, emphasizing that it is more a matter of “when” rather than “if.”