Eleanor Terrett, a journalist specializing in cryptocurrencies and affiliated with Fox Business media outlet, has provided an intriguing update on the potential approval of Ethereum (ETH) spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) in May.
Terrett suggests that the optimism surrounding the approval of at least one spot Ethereum ETF by May 23 is gradually diminishing. She cites sources familiar with the matter who claim that recent discussions about the approval of spot Ethereum funds have been one-sided. While issuers of prospective Ethereum spot ETFs have attempted to persuade the SEC to initiate the approval process, the securities regulator has not shown the same level of enthusiasm as it did with spot Bitcoin funds.
Terrett outlines two reasons for the SEC’s lackadaisical behavior towards approving spot Ethereum ETFs. Firstly, SEC Chair Gary Gensler believes that he has already satisfied the crypto industry by approving multiple Bitcoin ETFs. Gensler’s vote was crucial in the introduction of Bitcoin spot ETFs in the United States. Secondly, there are anti-crypto politicians, such as Senator Elizabeth Warren, who are actively opposing the potential approval of an ETH-based product. These politicians have expressed their displeasure with the SEC for approving Bitcoin spot ETFs and are now striving to prevent a similar outcome for Ethereum.
With only two months remaining until May 23, one source suggests that the SEC needs to promptly begin processing the various Ethereum spot ETF applications in order to increase the chances of approval.
Eric Balchunas, a well-known ETF analyst, shares a similar sentiment. Balchunas previously predicted that the SEC would approve at least one Ethereum ETF by May 2024, but he is now less optimistic about this forecast. He attributes his skepticism to the SEC’s reluctance to comment on Ethereum spot ETF issuers, which he perceives as a negative sign. Additionally, the agency has not faced any legal challenges regarding the approval of Ether-based funds, unlike its loss against Grayscale Investments in August, which motivated the approval of all Bitcoin spot ETFs.
Despite the diminishing optimism for the approval of Ethereum spot ETFs by May 23, the price of ETH continues to experience significant gains. The second-largest cryptocurrency recently surpassed the $4,000 resistance level, reaching a 24-hour high of $4,030. At the time of writing, ETH is trading at $4,008, representing a 13.5% increase over the past seven days.
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