Key Points
The successful launch of Bitcoin (BTC) spot ETFs has led to growing anticipation for the approval of Ethereum ETFs. This potential approval could boost the cryptocurrency’s price and attract a wider range of investors.
Yet, according to Fox Journalist Eleanor Terret, hopes for the SEC’s approval of Ethereum ETFs by May 23rd are dwindling.
Challenges in Engaging SEC Staff for Ethereum ETFs
Terret recently shared a social media post highlighting the difficulties faced by issuers and custodians in engaging SEC staff. She also shed light on potential factors influencing their decision-making process.
Based on her conversations with industry insiders, Terret reported a lack of meaningful engagement from SEC staff.
Unlike the active participation of staff in discussions about Bitcoin spot ETF applications, the interactions regarding Ethereum ETFs have been “one-sided.”
Terret suggested that this change might be due to SEC Chairman Gary Gensler’s belief that the approval of BTC spot ETFs has already satisfied industry demands.
Moreover, anti-crypto politicians like Senator Elizabeth Warren have voiced their dissatisfaction with the SEC’s approval of Bitcoin ETFs, possibly impacting the decision-making process for Ethereum ETFs.
Understanding the SEC staff’s position on Ethereum ETFs has been difficult, according to Terret’s sources.
There is uncertainty about their motivations and decision-making process. However, with the clock ticking, industry players are hoping for the SEC staff to start work soon if approval is to be possible.
The declining optimism for the approval of Ethereum ETFs raises questions about the future of the cryptocurrency market.
While the approval of BTC spot ETFs brought renewed enthusiasm, the hesitance surrounding ETH ETFs may suggest a more cautious approach from the SEC.
As of writing, ETH has reached a new two-year high of $4,067, showing a significant 4.5% upward trend in the past 24 hours, following Bitcoin’s recent upward trajectory.
