SEC’s Hesitation Casts Shadow Over Prospects of Ethereum ETF Approval, Analysts Warn

SEC’s Hesitation Casts Shadow Over Prospects of Ethereum ETF Approval, Analysts Warn

Crypto News – The enthusiasm within the crypto community surrounding the Securities and Exchange Commission‘s (SEC) potential approval of a spot Ethereum ETF by May 2024 has encountered a shift in perspective. In a recent post by Fox Business reporter Eleanor Terrett, she suggests that the optimism for the SEC’s endorsement of ETH spot ETFs by May 23rd is beginning to dwindle.

Following discussions with sources familiar with the matter, Terrett highlights a growing reluctance within the SEC to proceed with the launch of an Ethereum ETF. Despite ongoing interactions with ETF issuers and custodians, the SEC’s stance appears less cooperative. One source conveyed uncertainty, remarking, “Staff has been very hard to gauge on this and we’re not sure if anyone really knows what’s going on in their heads. But they’re going to have to start work soon if it’s going to have a shot.“

This stands in contrast to the SEC’s proactive engagement with asset managers prior to the launch of the spot Bitcoin ETF. Reports suggest that SEC Chair Gary Gensler perceives the approval of the Bitcoin ETF as a form of appeasement to the industry. Moreover, the SEC has faced criticism from notable crypto skeptics like Senator Elizabeth Warren for greenlighting the Bitcoin ETF, further complicating the prospects for an Ethereum ETF approval.

In a previous report, Terrett highlighted the perspectives of key figures within the industry, who indicated a perceived 50-50 chance of ETF approval in May.

Recently, Eric Balchunas, Bloomberg’s Senior ETF analyst, voiced dissatisfaction with the SEC’s handling of Ethereum ETFs. He expressed concern over the regulator’s reluctance to engage with issuers, viewing it as an unfavorable indication for ETF approval.