Now, following the green signal for 11 spot Bitcoin ETFs, the potential approval of a spot Ethereum ETF is in the spotlight. Many people are wondering if Ethereum cards also have similar acceptance.
However, the U.S. Securities and Exchange Commission’s (SEC) regulations on how to process Ethereum are unclear, making it difficult to obtain approval.
SEC’s Ethereum Uncertainty
The U.S. Securities and Exchange Commission (SEC) has not yet determined whether Ethereum (ETH) is a security. Perhaps this uncertainty could prevent the ETF from getting approved. Additionally, the SEC has had some issues approving Bitcoin ETFs, which has led people to wonder if Ethereum will face the same issues.
Despite these challenges, some optimists see recent successes, including Grayscale’s appeals court victory and the approval of an Ethereum futures ETF, as positive signs. They believe that approval of an Ethereum ETF is imminent. We are expecting an appeal in the hope that the SEC will change its position to avoid problems if it decides ‘no’ last May.
Brett Tejpaul, Head of Coinbase Institutional, is noticing growing interest in spot Ethereum ETFs among Coinbase customers. However, the SEC’s reluctance to definitively classify Ethereum as a security could add complexity and potentially impact the fate of the Ethereum ETF.
What analysts say
Eric Balchunas is more optimistic. giving a 70% chance For Ethereum ETF approval, James Seyffart takes a more cautious stance and estimates it to be around 60-65%. They acknowledge both positive and negative aspects, but believe the odds are relatively better compared to other cryptocurrencies.
Bitwise, a Bitcoin ETF-related company, is also optimistic about the potential of an Ethereum ETF. They highlight essentials such as a strong market for Ethereum futures. However, they acknowledge that it is unclear when approval will occur due to the complexity of Ethereum compared to Bitcoin.
Some Skeptics Take a Cautious Approach
However, skeptics argue that the SEC’s historic delay in approving cryptocurrency matters casts doubt on a speedy approval for an Ethereum ETF. They note that since most cryptocurrencies are considered investments, it may be difficult to secure approval for Ethereum, which does not fit that mold.
JPMorgan analysts echoed this skepticism, noting that it was unclear whether the SEC would treat Ethereum as a commodity for approval in May.
Additionally, investment banker TD Cowen suggests that the SEC may prefer to observe Bitcoin ETF performance before deciding anything else. Meanwhile, although enthusiasm for the Ethereum ETF is strong, challenges continue. While some are still hopeful, doubts remain, creating a waiting game for the cryptocurrency community.