Key Points
- Ethereum’s spot and futures ETF correlation is weaker than Bitcoin’s.
- The SEC’s unclear stance on Ethereum’s status is causing industry concern.
Spot Bitcoin ETFs have gained popularity, leading to a surge in demand for similar investment opportunities for other cryptocurrencies.
Ethereum’s Spot ETF Anticipation
Ethereum, the world’s second-largest cryptocurrency, is expected to have its own spot ETF in the coming two months.
However, certain developments have raised doubts about the likelihood of approval.
Eric Balchunas, a senior ETF analyst at Bloomberg, stated that the U.S. Securities and Exchange Commission (SEC) staff had not yet commented on the ETFs to the asset managers.
Balchunas saw this as a negative sign as the regulator had previously commented on Bitcoin spot ETFs.
The lack of communication between the SEC and asset managers is reducing the chances of approval each day.
The SEC’s Unclear Stance on Ethereum
The weaker correlation between Ethereum spot and futures ETF compared to Bitcoin is adding to the pessimism.
The uncertainty is mainly due to the SEC’s unclear position on Ethereum’s status.
In a recent discussion with Bloomberg, SEC Chair Gary Gensler avoided answering whether Ethereum is a security or a commodity.
It’s important to note that the SEC hasn’t given a clear approval to any tokens other than Bitcoin.
Like Bitcoin spot ETFs, asset management giants like BlackRock and Grayscale have shown interest in spot Ethereum ETFs.
Standard Chartered, a British multinational bank, has predicted an approval by May 23rd, the final deadline for the first list of ETF applications.
According to research, the approval path for Ethereum would be similar to that of Bitcoin, with the SEC delaying until finally giving the green light.
At press time, Ethereum was trading at $3.954, with no significant movement in the last 24 hours.
However, the past week was notable as the coin recorded gains of 16.7%.
