SEC Expected to Approve Spot Ethereum ETFs by May 23
Standard Chartered Bank analysis predicts that the Securities and Exchange Commission (SEC) will likely approve spot Ethereum exchange-traded funds (ETFs) on the initial final deadline of May 23. This follows a similar approach to approving spot Bitcoin ETFs.
Ethereum ETF Approval Likely Despite Delays
Geoffrey Kendrick, head of forex and digital asset research at Standard Chartered Bank, expects pending applications for spot Ethereum ETFs to be approved on May 23. He also suggests that if Ethereum’s price trajectory is similar to Bitcoin’s before ETF approval, it could reach $4,000 by that date.
Kendrick supports the approval based on the SEC’s classification of ether as a non-security and its listing as a regulated futures contract on the Chicago Mercantile Exchange (CME).
Insights into Ethereum ETF Roadmap
Financial lawyer Scott Johnsson believes long-term approval for spot Ethereum ETFs is highly likely but may face short-term delays due to ongoing regulatory actions involving Coinbase and Binance securities exchanges.
Johnsson highlights the regulatory path for spot ETF offerings using Bitcoin as an example. He suggests that the timeline for Ethereum is compressing, with applications open for both futures ETFs and spot ETFs.
Factors Influencing SEC’s Approach to Approvals
Johnsson discusses two key factors in the SEC’s approach to future approvals. Firstly, he emphasizes the correlation analysis threshold question in light of the Grayscale ruling. Secondly, he notes the SEC’s view bounded by the recent BTC approval order, which considers correlation with the CME and intra-day trading data.
Once a sufficient level of correlation is achieved, Johnsson believes that approval for spot Ethereum ETFs will likely follow shortly after. May is the expected month of approval.
Hot Take: SEC Approval of Spot Ethereum ETFs Imminent
Industry analysts and experts suggest that it is only a matter of time before the SEC approves spot Ethereum ETFs, as long as there are no major legal shifts. Ethereum’s current trading price is $2,370, with an increase of over 2% in the past 24 hours and over 7% in the past seven days.
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