The Current State of Ethereum ETF Approvals

Recently, FOX Business reporter Eleanor Terrett discussed the expectations surrounding spot Ethereum ETF approvals. Terrett touched on a crucial point by suggesting that the U.S. Securities and Exchange Commission (SEC) is not inclined to approve a spot Ethereum ETF. While the source remains unidentified, it is uncertain whether they are a member of the SEC or an asset manager seeking approval. Interestingly, SEC commissioner Hester Peirce, known for her pro-cryptocurrency stance, has advocated for a more streamlined approach to decision-making. However, the SEC’s reluctance seems evident due to its previous partial approval of spot Bitcoin ETFs, which was influenced by legal victories obtained by Grayscale.

Securing Approval Through Regular Way Consideration

Peirce criticized the SEC’s approach in an interview with crypto news platform Coinage, stating that ETF approvals should undergo “regular way consideration” instead of relying on court cases for action. The upcoming months will shed more light on the SEC’s stance as it becomes apparent if the regulatory body engages with S-1 registration statements. Typically, the SEC posts notices of meetings with asset managers and exchanges on the respective ETF’s page once scheduled. Despite internal resistance within the SEC, asset managers responsible for issuing the funds remain optimistic about receiving approval. One issuer confidently projects that the approval and successful launch of Bitcoin spots will compel the SEC to approve ETH spot ETFs. Furthermore, another unnamed issuer anticipates a spot Ethereum ETF to launch by the end of summer, citing previous SEC approvals of Ethereum futures ETFs and BlackRock’s strong track record in obtaining ETF approvals as supporting factors. Additionally, comments from the Commodity Futures Trading Commission (CFTC) suggesting Ethereum as a commodity and Ripple’s partial legal victory against the SEC are also seen as potential factors preventing the SEC from classifying crypto assets as securities. Nonetheless, it remains unclear how these developments directly impact spot Ethereum ETF approvals in the near future.

Varying Public Expectations

Notably, public expectations regarding the approval of a spot Ethereum ETF differ. Bloomberg ETF analyst Eric Balchunas predicts a 70% chance of approval in May, highlighting the potential progress that could be made. However, JP Morgan executive Nikolaos Panigirtzoglou offers a more conservative estimate, suggesting a 50% chance of approval. Meanwhile, Polymarket odds indicate a slightly higher possibility of approval at 53%. These varying opinions reflect the uncertainty and complexity surrounding the current state of Ethereum ETF approvals.

The prospect of spot Ethereum ETF approvals remains a topic of great interest and speculation. While there is internal resistance within the SEC, asset managers and industry professionals maintain cautious optimism for future approval. The SEC’s decision-making process and engagement with S-1 registration statements will provide further insight into its stance. As the summer unfolds, the outcome of spot Ethereum ETF approvals will become clearer, and the crypto community will eagerly await the SEC’s decision.