1. Chairman of the U.S. SEC: The economic substance of a product determines whether it is a security under the Securities Act

According to data from the Hong Kong Stock Exchange, the total trading volume of the 6 virtual asset spot ETFs issued in Hong Kong's first batch is approximately HKD 83.36 million, including: Huaxia Bitcoin ETF (3042.HK) with a trading volume of HKD 35.48 million, Huaxia Ethereum ETF (3046.HK) with a trading volume of HKD 12.63 million; Boshi HashKey Bitcoin ETF (3008.HK) with a trading volume of HKD 10.16 million, Boshi HashKey Ethereum ETF (3009.HK) with a trading volume of HKD 2.48 million; Jiashi Bitcoin Spot ETF (3439.HK) with a trading volume of HKD 17.66 million, Jiashi Ethereum Spot ETF (3179.HK) with a trading volume of HKD 4.95 million.

Industry insiders said the US Securities and Exchange Commission (SEC) is expected to reject the Ether ETF next month.

The probability of the prediction on Polymarket, a blockchain-based prediction market, about whether the Ethereum (spot) ETF will be approved by the SEC before May 31st is currently 19%.

Fidelity has written in a revised submission to the US Securities and Exchange Commission (SEC) that it wants to offer its potential Ethereum fund traders the ability to pledge a portion of their assets. The asset management company applied to launch an Ethereum exchange-traded fund (ETF) in November last year. Other potential issuers include BlackRock, Ark Invest, and Grayscale.

Senators Reed and Butler have sent a letter to SEC Chair Gensler, urging caution and scrutiny in the approval process for crypto ETFs. They argue against blanket approval of cryptocurrency ETPs, citing concerns over market integrity and investor protection. The senators also express skepticism regarding thinly traded cryptocurrencies' suitability for ETPs, citing potential risks to retail investors. This has led to uncertainty over the approval of Spot Ethereum ETF applications by Grayscale, BlackRock, VanEck, and Franklin Templeton. Additionally, Bitcoin ETFs' inflow of funds has decreased by 80% to $133 million as BTC's price falls.

Jake Chervinsky, Chief Legal Officer of Variant Fund, stated on his social media platform that the relevant legal issues and policy environment make it more likely for the SEC to reject the Ethereum spot ETF (or require withdrawal) in May than expected. At the same time, Chervinsky also stated that this does not mean that the SEC will absolutely not approve it.

The possibility of an ether-backed ETF is generating excitement in the crypto industry, but the SEC's decision on whether ether is a security remains uncertain. If ether is deemed a security, it could impact the status of thousands of cryptocurrencies and require ETF issuers to treat it as such. Despite resistance from the industry, some issuers may break ranks depending on the SEC's decision. The decentralized structure of the Ethereum network and its governance have evolved over time, leading some to argue that ether is not a security, but the potential profits for the issuer of the first spot ether ETF could be substantial. However, approval of an ether ETF under the 1940 Act could create significant havoc for the greater crypto industry, particularly in the ether spot market, as many exchanges are not authorized to trade securities.

According to a research report released by brokerage firm Bernstein on Monday, it may be time to focus on the second largest cryptocurrency, Ethereum. The report states that Ethereum "may be the only digital asset that could possibly obtain SEC spot ETF approval." Bernstein said the likelihood of an Ethereum spot ETF being approved before May is about 50% and almost certainly within the next 12 months. <br>

US Securities and Exchange Commission (SEC) has delayed the approval of the BlackRock Ethereum ETF.