Spot Ethereum ETF Approval Unlikely?
A recent report suggests that the approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is becoming increasingly unlikely. Conversations with industry insiders indicate that the SEC staff has not been responsive or engaged in meaningful discussions regarding Ethereum ETF applications, unlike their handling of Bitcoin ETF applications.
SEC Chairman Gary Gensler is believed to have already satisfied industry demands with the approval of Bitcoin ETFs. Additionally, prominent anti-crypto politicians, such as Senator Elizabeth Warren, are actively opposing the possibility of Ethereum ETF approval.
Lack of Engagement from SEC Staff
The lack of feedback from the SEC staff to the issuer of the Ethereum spot ETF application is viewed unfavorably. This is in contrast to their involvement during the evaluation of Bitcoin spot ETFs. The absence of engagement suggests a potentially less optimistic outlook for Ethereum ETF approval.
No Strong Correlation Between ETH Spot and Futures ETF
Analysts note that there is no strong correlation between Ethereum spot and futures ETFs, unlike Bitcoin. This further supports the notion that the approval of Ethereum ETFs may face more challenges compared to Bitcoin ETFs.
Optimism Surrounding Spot Ethereum ETF Fading
According to Fox Business Journalist Eleanor Terret, optimism surrounding the approval of spot Ethereum ETFs by the SEC before May 23rd is diminishing. Recent meetings between issuers, custodians, and SEC staff have been one-sided, with little responsiveness or engagement from the SEC side.
Terret also mentioned that SEC Chairman Gary Gensler believes he has already met industry demands with the approval of Bitcoin ETFs. Furthermore, politicians like Senator Elizabeth Warren are actively opposing Ethereum ETF approval.
SEC Staff’s Lack of Clarity
The SEC staff’s lack of clarity and responsiveness regarding Ethereum ETFs has left industry insiders uncertain about the approval process. It remains to be seen whether the SEC staff will make progress on this matter in the near future.
Analyzing the Correlation Between ETH Spot and Futures ETFs
While there is a strong correlation between Bitcoin spot and futures ETFs, the same cannot be said for Ethereum. This suggests that the approval of Ethereum ETFs may face more obstacles compared to Bitcoin ETFs.
Conclusion: Outlook for Ethereum ETF Approval
The current situation surrounding the approval of spot Ethereum ETFs appears uncertain. The lack of engagement from SEC staff, coupled with the absence of a strong correlation between Ethereum spot and futures ETFs, indicates potential challenges for Ethereum ETF approval.
However, it is important to note that analysts remain optimistic about the overall trajectory of Ethereum’s price. They anticipate a minimum gain of 25%, with a target price of $5,000. The upcoming Dencun Upgrade will also play a significant role in determining whether the bullish momentum can be sustained.
Hot Take: Is Spot Ethereum ETF Approval Likely?
The likelihood of spot Ethereum ETF approval by the SEC remains uncertain. While industry insiders express concerns about the lack of engagement from SEC staff and the absence of a strong correlation between Ethereum spot and futures ETFs, analysts remain optimistic about Ethereum’s price rally.
It is important for crypto enthusiasts to closely monitor developments related to Ethereum ETF applications and regulatory decisions. The outcome will undoubtedly have an impact on the market and investor sentiment towards Ethereum.
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