The US ethereum ETF saga continues with a new twist: cautious optimism. After the unexpected green light from the US Securities and Exchange Commission for ethereum spot ETFs in May, investors have been eagerly awaiting the launch date. But according to crypto-regulation.html” rel=”nofollow noopener” target=”_blank”>SEC Chairman Gary Gensler Patience remains key.
Gensler throws cold water on hopes for quick launch
In a recent interview with CNBC, Gensler tempered expectations, stating that final approvals for individual ETFs will “probably take some time.”
This suggests that the review process will likely take a long time, which could postpone the establishment of ethereum ETFs, according to Fox Business writer Eleanor Terrett. However, Gensler offered a glimmer of hope by acknowledging that the process is underway.
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NEW: twitter.com/SECGov?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>@SECGov
-Eleanor Terrett (@EleanorTerrett) twitter.com/EleanorTerrett/status/1798351844248576311?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 5, 2024
This wait-and-see approach comes amid continued communication between the SEC and ETF issuers. Several companies have modified their applications based on the SEC's comments, including removing staking options and disclosing custodian details. These amendments suggest a collaborative effort, which could speed up the approval process.
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Total crypto market cap at $2.5 trillion on the daily chart: TradingView.com
Expert opinions divided on the schedule
Market experts are divided on the exact timeline of these ETF launches. Bloomberg Senior ETF Analyst Eric Balchunas remains optimistic. He believes issuers could receive the go-ahead from the SEC by the end of June, with a possible launch date as soon as July 4. James Seyffart, another Bloomberg analyst, is more cautious and avoids specific dates, but suggests that approvals will likely come in weeks, not months.
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Good sign. We'll probably see the break coming soon. Then, propose one more round of pointed feedback from staff. Releasing in late June is a legitimate possibility, although I'll keep my release date as July 4th. https://t.co/WymshkTvat
– Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1795934675380109479?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>May 29, 2024
ethereum ETF: Long-term success is uncertain
Although the perspective of ethereum ETF Although exciting for some, experts warn against unrealistic expectations. Unlike bitcoin, which saw a surge in inflows with the launch of its ETF, ethereum's future could be less meteoric. Overall market volatility and lack of clarity around bets within these ETFs could dampen investor enthusiasm.
A calculated move, not a gold rush
The approval process for ethereum ETFs highlights the SEC's measured approach to cryptocurrency regulation. While the agency appears receptive to innovation, it prioritizes investor protection. This cautious stance could delay the launch, but could also ensure a more stable and secure entry point for major investors into the ethereum market.
For now, investors should prepare for a potentially bumpy ride. While the launch of ethereum ETFs appears to be on the horizon, it is likely to be a gradual launch rather than a sudden explosion. This measured approach, while frustrating to some, could ultimately pave the way to a more sustainable future for ethereum and cryptocurrencies as a whole.
Featured image from Adaptas Training, TradingView chart
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