Key Points
- Market speculates on the potential approval of an Ethereum ETF, following recent Bitcoin ETF approval.
- SEC Chair Gary Gensler’s silence indicates a complex approval process and leaves investors in anticipation.
With the recent green light given to Bitcoin ETFs, focus has now turned towards the potential approval of an Ethereum ETF.
Unlike Bitcoin, the road to an Ethereum ETF approval is less certain, leading to market speculation about a possible timeline.
Uncertainty Surrounding Ethereum ETF Approval
SEC Chair Gary Gensler has not provided any clear hints about the commission’s stance on approving an Ethereum ETF in the near future.
During a recent interview with Yahoo Finance, Gensler refrained from making any direct comments on the matter.
He stated that he doesn’t want to prejudge any filings and that there are ten filings currently in front of the SEC.
Market Anticipation and Concerns
In the midst of this uncertainty, major market players like BlackRock and Fidelity are already positioning themselves for a potential Ethereum ETF.
Despite the optimism generated by the existence of Ether futures ETFs and Grayscale’s past victories against the SEC, Bloomberg’s senior analyst Eric Balchunas warns that the SEC’s silence could indicate potential obstacles.
Eric pointed out that the lack of feedback from the SEC to the issuers is not a positive sign.
Interestingly, Gensler’s disapproval of the cryptocurrency industry was apparent, despite his role in the recent Bitcoin ETF vote.
He criticized the industry for prevalent fraud and abuse, referring to recent bankruptcies.
He also criticized intermediaries for not being transparent about their handling of investors’ funds, comparing their actions to practices that are not permitted on traditional stock exchanges.
The potential approval of an Ethereum ETF could pave the way for wider acceptance of similar crypto ETFs in traditional finance.
However, Gensler’s noticeable silence on the SEC’s position suggests a complicated approval process ahead, keeping investors and market participants on their toes.
