SEC’s Ethereum ETF or the possibility of spot Exchange Traded Fund approval has started to decline significantly lately. It recorded a sharp decline of 24%, driven by market sentiment on platforms such as Polymarket.
Despite the crypto community’s initial optimism, recent developments indicate that Ethereum ETFs have diminished chances of receiving SEC approval, especially ahead of the expected May 23 decision date. Fox Business reporter Eleanor Terrett reveals a significant change in the SEC’s approach to ETFs. took out.
🚨SCOOP: Optimism about the @SECGov approving the $ETH spot ETFs by May 23rd is trying.
Based on my conversations with people familiar, meetings in recent weeks have been very much one sided, with issuers and custodians trying to rally SEC staff to get the process rolling, but…
NEWS CONTINUES BELOW— Eleanor Terrett (@EleanorTerrett) March 10, 2024
Insider information suggests that the SEC, led by Gary Gensler, is less concerned about ETH ETFs than Bitcoin ETFs and is paying less attention to the progress being made on Bitcoin ETFs.
Additionally, figures unhappy with the SEC’s approval of Bitcoin ETFs, such as Senator Elizabeth Warren, appear to be increasing regulatory pressure on Ethereum products.
Ethereum ETF Fortunes Are in Trouble
The SEC recently delayed its decision on several Ethereum ETF proposals, including those from financial giants like BlackRock and Fidelity.
Although this is an expected result, it is seen by market analysts that this situation creates more uncertainty. This delay suggests a cautious approach, reflecting the SEC’s previous hesitations regarding Bitcoin ETFs.
As Koinfinans.com reported, Eric Balchunas, a senior analyst at Bloomberg, tempered expectations for Ether ETFs, likening them to an opening act followed by a headliner.
According to Jake Chervinsky, Variant’s chief legal officer, the SEC’s cautious approach was influenced by political resistance and market volatility.
However, the crypto industry remains hopeful and continues to look for potential signals of approval in future actions and comments from the regulator.
