Ethereum ETF Approval: Navigating the SEC's Silence & Market Speculation

After years of waiting, Bitcoin ETFs are now a reality. But all eyes are turning toward whether the SEC will approve an Ethereum ETF next. The path to approval for ETH ETFs remains unclear, as the market keeps guessing on a potential date.

SEC Chair Gary Gensler has stayed tight-lipped on whether the commission will approve a spot Ether ETF anytime soon. In a recent Yahoo Finance interview, Gensler dodged a question about the ten firms racing to approve a spot Ethereum product.

“I don’t want to prejudge any filings in front of us,” Gensler stated. “We look at the facts and circumstances of what is filed.”

Meanwhile, leading asset managers like BlackRock and Fidelity, which dominated the Bitcoin ETF scene, are already in the race for a spot in Ether ETF. Some experts suggest that the SEC approves it, considering the existence of ether futures ETFs and Grayscale’s court victory over the SEC last year.

However, Bloomberg senior analyst Eric Balchunas indicates the SEC’s silence may not bode well, particularly since issuers received comments on their Bitcoin Spot ETF proposals in the past.

Normally I'd say this was good sign but as far as I know the Staff has not given any comments yet to the issuers, which is not a good sign as we past when they gave comments on btc ETFs. Further, there's no court loss hovering over. And the correlations bt futures and spot isn't… https://t.co/AVMhL1QKGf
— Eric Balchunas (@EricBalchunas) March 8, 2024

Gensler Criticizes Crypto Industry Amid ETH ETF Speculation

While keeping the market guessing on ETH ETFs, Gensler didn’t hold back criticism of the crypto industry despite playing a role in approving the Bitcoin ETF.

He shared that the crypto world is rife with abuse and fraud, citing recent bankruptcies. He criticized intermediaries pooling investor assets without proper disclosures, stating, “They’re doing things stock exchanges can’t do.”

The SEC typically takes the full 240-day period before deciding on an ETF proposal. Most ETH ETFs have a waiting period ending on May 23rd. Balchunas believes there’s a 75% chance they’ll get approved in May.

However, the approval process can be lengthy and complex, with no guarantees. The SEC recently met with Grayscale and Coinbase regarding the ETH ETFs. Approving an ETH ETF could pave the way for broader crypto ETF acceptance in traditional finance. However, Gensler’s silence suggests that the approval process will be complicated.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.