Are Hopes for Spot Ethereum ETF Approvals Diminishing?

Crypto New– Since the approval of spot Bitcoin ETFs in mid-January, the crypto markets have surged by an additional 60%, contributing a trillion dollars to the total capitalization.

Are Hopes for Spot Ethereum ETF Approvals Diminishing?

While Bitcoin reached a new all-time high, Ethereum struggled to decisively surpass the $4,000 level.

On March 11, Fox Business correspondent Eleanor Terrett suggested that optimism regarding the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) by May 23rd is diminishing. According to Terrett, discussions with individuals familiar with the matter indicate that recent meetings have been largely one-sided.

Despite efforts from issuers and custodians to encourage SEC staff to move forward with the approval process, the engagement has been limited compared to discussions surrounding Bitcoin spot ETF applications. Terrett noted that Gary Gensler, the SEC Chairman, may believe that approving spot Bitcoin ETFs has already satisfied industry demands.

Moreover, certain anti-crypto politicians, such as Elizabeth Warren, are reportedly opposed to the approval of Ethereum ETFs and are lobbying against it.

A source mentioned that the stance of SEC staff on this matter has been difficult to interpret, emphasizing the need for them to begin work soon if there is any chance of approval. Nate Geraci, President of ETF Store, commented on the SEC’s argument that Ethereum futures are not highly correlated with spot markets, questioning how they could deny approval based on this reasoning.

Geraci highlighted Grayscale’s recent court victory as a potential catalyst for approval, suggesting that the SEC would either need to reverse its historical acceptance of Ethereum as a commodity or risk facing lawsuits from issuers.

He concluded by stating that if the SEC is comfortable with investors owning Ethereum futures ETFs, they should logically be supportive of spot Ethereum ETFs as well.