Despite the U.S. Securities and Exchange Commission’s (SEC) current rejection of spot Ethereum ETFs, issuers are maintaining a positive outlook. The cryptocurrency market is filled with anticipation as issuers and investment management firms await the SEC’s decision with bated breath.
This optimism is fueled by the recent approval of the Bitcoin ETF launch, which has raised hopes for the launch of an Ethereum ETF. An insider at the SEC pointed out the “internal opposition” within the commission to the approval of the Ethereum ETF. However, issuers and other sources continue to hold a positive view about the launch.
Hester Pierce, the SEC’s Republican Commissioner, indicated that the regulators would be “applying ‘regular way’ consideration” to Ethereum ETFs. Pierce, who had been a proponent of Bitcoin ETFs even before its launch, emphasized that the commission does not want to repeat the “same mistake of delays” that occurred with Bitcoin ETFs.
Despite the optimism surrounding a potential approval of a spot ETF, Ethereum’s price hasn’t reacted properly. Even though it’s 1.20% up trading at $2,241 in the last 24 hours, in the last seven days, ETH has been down nearly 12%.
Why Ethereum ETFs Are Still Possible After Bitcoin ETF Approval
Another source expressed their expectation of the Ethereum ETF launch by the end of summer. They noted that several factors, including the Commodity Futures Trading Commission’s (CFTC) classification of Ethereum as a “commodity” and XRP’s significant victory against the SEC, would deter the regulators from categorizing crypto assets as securities.
John Deaton, a well-known XRP attorney, made a statement, suggesting, “Ripple’s partial victory with XRP not being a security during secondary market transactions will make it a challenging task for Gary Gensler”. According to a tweet by Fox Business reporter Eleanor Terrett, a Bitcoin Spot ETF issuer that also holds an Ethereum Spot ETF recently reaffirmed its positive stance on the SEC’s approval of the Ethereum ETFs.
Reporting on the timeline for a potential $ETH ETF approval has turned up a plethora of different takes from ETF issuers, investment management firms and sources close to the @SECGov.
✨One $BTC Spot ETF issuer with an ETH Spot ETF application says they’re confident the…
— Eleanor Terrett (@EleanorTerrett) January 23, 2024
In response to questions about the likelihood of an Ethereum ETF approval following a Bitcoin ETF, Eric Balchunas from Bloomberg suggested that the first filers, Ark and VanEck, have a high chance of approval by their final deadline on May 23, 2024.
While the SEC’s decision is still up in the air, the enthusiasm among issuers and the broader crypto community is evident. The upcoming months will be pivotal in shaping the future of Ethereum ETFs.
