Key Points
- The SEC’s approval of Bitcoin ETFs may face political backlash, potentially impacting Ethereum ETF’s approval.
- Major financial institutions like BlackRock and Grayscale are interested in Ethereum spot ETFs.
The recent authorization of spot Bitcoin (BTC) ETFs has led to anticipation for similar approval for Ethereum (ETH), the world’s second-largest cryptocurrency.
However, there are now doubts about an ETH ETF approval happening this year.
Political Repercussions and the SEC
Jake Chervinsky, Chief Legal Officer of venture fund Variant, voiced his reduced confidence in an ETH ETF approval this year.
Chervinsky, known for his expert insights on legal and regulatory matters related to cryptocurrencies, mentioned potential political fallout as a reason for the decreased chances of approval.
He stated, “The SEC got a ton of political blowback for approving BTC ETFs, even though the court basically forced it to. Now animal spirits are in control of the market, and an ETH ETF would only add to that.”
U.S. Senator Elizabeth Warren had strongly condemned the SEC’s decision to approve spot Bitcoin ETFs.
On the day the ETFs were approved for U.S. trading, Warren said, “If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules.”
Interestingly, SEC Chair Gary Gensler, a Democrat, joined two SEC commissioners from the Republican Party to deliver a 3:2 vote in favor of the ETFs.
Interest in Ethereum ETFs
Similar to Bitcoin spot ETFs, U.S. financial market giants such as BlackRock and Grayscale have shown interest in spot Ethereum ETFs.
British multinational bank Standard Chartered predicted approval by the 23rd of May, the final deadline for the first list of ETF applications.
The team behind this forecast stated that the approval process would likely resemble that of Bitcoin, with the SEC delaying until finally giving the green light.
