The possibility of approval for an Ethereum spot ETF by the U.S. Securities and Exchange Commission (SEC) is decreasing, according to Fox Business reporter Eleanor Terrett. Unlike the approval process for a Bitcoin spot ETF, the SEC has not been actively advancing the approval process for an Ethereum spot ETF. Additionally, influential politicians such as Senator Elizabeth Warren are strongly opposing the approval of related applications.
BlackRock and Fidelity submitted applications for an Ethereum spot ETF to the SEC in November of last year, followed by financial institutions such as Hashdex, ARK 21Shares, and VanEck. Currently, there are a total of 8 Ethereum spot ETF applications.
However, the SEC has repeatedly postponed its decision in recent months, with the most recent delay occurring on May 4th regarding the applications from BlackRock and Fidelity.
May 23rd – A Difficult Challenge?
It is widely expected that May 23rd will be an important date to determine whether the Ethereum spot ETF can be approved, as it is the final approval deadline for VanEck’s application. However, Eleanor Terrett revealed today that the optimism for the SEC to approve an Ethereum spot ETF before May 23rd is diminishing.
Regarding this situation, Eleanor Terrett mentioned that she has heard from a source that SEC Chairman Gary Gensler believes he has appeased the entire industry by approving the Bitcoin spot ETF. In addition, influential anti-cryptocurrency politicians such as Senator Elizabeth Warren are now uniting to oppose the approval of an Ethereum spot ETF.
Eleanor Terrett mentioned that a source told her that Bloomberg analyst Eric Balchunas previously estimated in January that the probability of approval for an Ethereum spot ETF in May was about 60%. However, on May 10th, he issued a warning stating that the outlook for the approval of a spot ETF in May is not very optimistic, despite the SEC’s meeting with Coinbase on May 6th regarding the transformation of the Grayscale Ethereum Trust into a spot ETF.
Previously, Gary Gensler avoided questions about whether the SEC might approve an Ethereum spot ETF in an interview on May 8th. He also emphasized in February that the decision to approve a Bitcoin spot ETF in January does not represent SEC’s endorsement of digital assets, nor does it necessarily mean they will handle Ethereum in the same way as Bitcoin in the future.
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– Ethereum Rises to Become the 20th Largest Asset Worldwide, While Bitcoin Holds Steady at 9th Position with CEX Daily Trading Volume at a 2-Year High.