What will happen to the ETH price if the SEC rejects all Ethereum spot ETF applications?

After a decade of waiting, rejection, and at best delays, the U.S. Securities and Exchange Commission finally gave the green light to nearly a dozen spot bitcoin ETFs in early 2024.

Its impact on the price of btc has been undeniable as demand for those products among traditional investors has skyrocketed. Now that there are exchange-traded funds that track the performance of at least one cryptocurrency, the community is speculating whether there will be tracking, particularly with eth.

eth ETF Applications

Numerous companies inside and outside the cryptocurrency industry want to follow bitcoin's example and have products that track the performance of the second largest digital asset. Perhaps the two biggest names with current SEC applications are BlackRock and Fidelity. However, the regulator continues to delay making a decision on any of its submissions.

Amid the SEC's latest delays, industry experts began questioning the agency's motives and drawing comparisons to how the watchdog operated before rejecting countless btc applications over the past ten years. years. As such, overall optimism around eth ETF filings has begun to wane in recent weeks despite earlier predictions that the Commission will approve all filings in May 2024.

The latest analysis on the topic suggests that the SEC plans to reject all ethereum ETF spot applications that have May expiration dates.

Impact on eth price?

As the community continues to speculate whether potential ethereum ETFs will be a flop compared to btc ETFs, we decided to ask popular ChatGPT alternative Perplexity about what would happen to the price of eth if the SEC rejects all current proposals. . Interestingly, the ai ​​chatbot believes that the agency's decision, no matter what it is, will not have that big of an impact on eth, at least in the short term.

“If the SEC rejects all ethereum spot ETF applications, the impact on the price of eth may not be as significant as initially anticipated. “Analysts and experts suggest that whether ETFs are approved or rejected, it may not have a substantial effect on the altcoin price in the short term.”

This theory might have some merit, given the btc ETF rejections over the past ten years. bitcoin became immune to SEC actions after so many rejections. However, the case of ethereum is quite different as the asset does not have such a long history with the regulator.

Furthermore, once the Commission gave the green light to all bitcoin ETFs, the price of the underlying asset went on a huge roller coaster in the coming weeks. Once demand and inflows increased, the price of btc also increased. The vice versa effect is also visible, as we have seen last week.

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