Anticipation surrounding the approval of ethereum ETFs has increased following the successful bitcoin (btc) spot ETF launch. The possible approval of eth ETFs promises to drive the price of the cryptocurrency to new heights and attract a wider range of investors.
However, according to Fox journalist Eleanor Terret, optimism about the SEC's approval of ethereum ETFs before May 23 is gradually declining. ebb.
ethereum ETFs Find 'One-Sided' Interactions
In a recent social network mailTerret highlighted the challenges issuers and custodians face in engaging SEC staff and revealed potential factors influencing the decision-making process.
Terret shared his observations, stating that recent conversations with industry experts revealed a lack of meaningful engagement from SEC staff.
In particular, Terret suggested that, unlike the discussions around bitcoin spot ETF Applications, where staff were actively involved, interactions regarding ethereum ETFs have been “one-sided.” Terret further stated:
Based on my conversations with people familiar, the meetings in recent weeks have been very one-sided, with issuers and custodians trying to rally the SEC staff to get the process going, but the staff not really participating in the meaningful way they did with the btc Spot ETF. Applications.
Terret attributed this change to SEC Chairman Gary Gensler's belief that the approval of btc spot ETFs already addressed the industry's demands. Additionally, influential anti-crypto politicians such as Senator Elizabeth Warren have expressed discontent with the SEC's approval of bitcoin ETFs, which could influence the decision-making process for ethereum ETFs.
SEC Staff Position Remains Elusive
According to Terret's sources, understanding the SEC staff's stance on ethereum ETFs has proven challenging. There is uncertainty about their motivations and decision-making process. However, the clock is ticking and industry players expect SEC staff to begin work soon if approval is possible. Terret noted:
A source tells me: “It's been very difficult to assess staff on this and we're not sure if anyone really knows what's going on in their heads. But they will have to start working soon if they want to have a chance.” May 23rd is just over 2 months away.
The waning optimism regarding the approval of ethereum ETFs raises questions about the future of the cryptocurrency market. While the approval of btc spot ETFs generated renewed enthusiasm, the hesitancy around eth ETFs may indicate a more cautious approach of the SEC.
At the time of writing, eth has reached a new two-year high of $4,067, experiencing a notable 4.5% uptrend in the last 24 hours, in line with bitcoin's recent upward trajectory.
Featured image from Shutterstock, chart from TradingView.com
