Spot Ethereum ETF Approval May Take Longer Than Expected, Indicates SEC Chairman
During an interview with Yahoo Finance, SEC Chairman Gary Gensler was asked about the likelihood of spot Ethereum ETF approval and whether staking reduces the chances. Instead of directly addressing the question, Gensler avoided discussing specific filings and maneuvered away from the topic whenever it was brought up.
The SEC’s Stance on Ethereum ETFs
The anticipation for spot Ethereum ETF approval is high, especially after Bitcoin ETFs were given the green light in January. However, Gensler’s reluctance to discuss the matter raises doubts about the SEC’s stance on Ethereum ETFs.
In contrast, Bitcoin ETFs have seen great success in just two months, outperforming many traditional assets like gold ETFs. Issuers such as BlackRock and Fidelity Investments have particularly excelled, attracting significant inflows and trading volume. This demonstrates institutional investors’ growing interest in cryptocurrencies, which could potentially benefit Ethereum.
The SEC’s Interest in Ethereum ETFs
Given the success of Bitcoin ETFs, industry observers expected the SEC to be more receptive to spot Ethereum ETFs. In January, SEC commissioner Hester Peirce expressed confidence that the regulator would not repeat past mistakes and would approve spot Ethereum ETFs soon.
However, recent actions by the SEC and Gensler’s responses to Ethereum ETF-related questions do not indicate an imminent approval. The agency has consistently delayed decisions on applications, signaling the need for more time to reach a verdict.
As a result, the probability of having spot Ethereum ETFs approved in the coming months, previously estimated at over 50%, is now diminishing.
Hot Take: Spot Ethereum ETF Approval May Face Delays
Despite the optimism surrounding spot Ethereum ETFs, it appears that approval may take longer than expected. Gensler’s evasive responses and the SEC’s prolonged decision-making process indicate a cautious approach towards these investment products.
While there is still a possibility of approval in the future, applicants and investors should prepare for potential delays and uncertainty. It is essential to closely monitor regulatory developments and adjust expectations accordingly.
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