Expect an Ethereum Spot ETF Approval by May 2024, Says Attorney
An attorney named Scott Johnsson believes that the U.S. Securities and Exchange Commission (SEC) could potentially approve an Ethereum (ETH) spot exchange-traded fund (ETF) as early as May 2024. If this timeline is not met, Johnsson estimates that approval could still be expected by mid-2025.
Spot Ethereum ETF Approval May Follow BTC’s Timeline
Johnsson highlights the SEC’s initial steps towards spot Bitcoin ETFs as a reference point for the potential approval of a spot Ethereum ETF. He notes the rapid progression of the approval processes for Bitcoin ETFs, which took place within 90 days ahead of the initially set deadline on January 10.
As the May 23 deadline for spot Ethereum ETFs approaches, Johnsson sees a potential repeat of the accelerated process based on the groundwork laid by Bitcoin’s regulatory journey.
However, Johnsson also cautions that the SEC might change its approach and not follow the same timeline for Ethereum, including potentially delaying the comment phase and approval process.
Ethereum ETF Approval ‘Inevitable’
The potential approval of a spot Ethereum ETF has generated significant interest from the cryptocurrency community and industry observers. Companies like Fidelity, Invesco, and BlackRock have submitted applications for such financial products.
Bloomberg ETF Analyst James Seyffart argues that the SEC does not need as much time to reach approval for an Ethereum ETF compared to Bitcoin. The regulatory groundwork laid by Bitcoin can significantly streamline the process for Ethereum.
Johnsson agrees with this perspective and suggests that the approval process for Ethereum could be faster this time. However, he acknowledges that there is no guarantee that the SEC will provide comments before moving forward with the approval process.
Expect Delays in Approval Past May 2024
Steven McClurg, the Chief Investment Officer at Valkyrie, predicts a delay in the approval of an Ethereum ETF past May 2024. He believes that the intricacies of disclosures for an Ethereum product will likely require more time-intensive processes for the SEC. As a result, it could take another year for the Ethereum ETF approval to be granted.
Ripple CEO Brad Garlinghouse has expressed confidence in the eventual approval of non-Bitcoin crypto ETFs. He believes that many ETFs will inevitably be introduced for different tokens over time.
Ethereum Price and Trading
As for the current price of Ethereum, it is trading at $3,090, reflecting a 2% increase in the last 24 hours and a 6% increase over the past week.
Hot Take: Expect an Accelerated Approval Process for Ethereum ETF
The potential approval of an Ethereum spot ETF by May 2024 is generating excitement among crypto enthusiasts. The timeline for approval could potentially follow a similar path to Bitcoin’s ETF approval process, which took place within 90 days ahead of the set deadline.
While there may be some uncertainties and potential delays, many experts believe that an Ethereum ETF approval is inevitable. The groundwork laid by Bitcoin’s regulatory journey can streamline the process for Ethereum.
It remains to be seen whether the SEC will provide comments before moving forward with the approval process, but there is optimism that it could be faster this time around.
Overall, crypto enthusiasts are eagerly awaiting the approval of an Ethereum spot ETF, which could have significant implications for the cryptocurrency market.
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