Gary Gensler’s reaction to a question posed to him about the likelihood of having spot Ethereum ETF approval suggests that the applicants for this product may have to wait longer than expected.
Is The SEC Looking Positively Toward Spot Ethereum ETFs
Jennifer Schonberger from Yahoo Finance sat down with Chairman of the United States Securities and Exchange Commission (SEC) Gary Gensler on Friday. In their conversation, she raised a question asking Gensler if he thinks that staking reduces the chance of spot Ethereum ETF approval.
Rather than give a direct response to the question, he clearly stated that he had no plan to speak about specific filings on the agency’s desk. Every other time the Yahoo Finance reporter tried to raise the Ethereum ETF subject, he completely maneuvered from the discussion.
Schonberger’s question is somewhat not unwarranted, especially as the crypto community is anticipating that spot Ethereum ETFs will get approved just as Bitcoin ETFs were greenlighted in January. In the space of almost two months, spot Bitcoin ETFs have registered enviable results, better than many traditional assets including gold ETFs.
Individually, a couple of the spot Bitcoin ETF issuers are performing excellently. BlackRock and Fidelity Investments are consistently leading the other spot Bitcoin ETF issuers with huge inflows and trading volume. These outstanding performances have shown the level of institutional investors’ interest in crypto, a trend that may benefit Ethereum.
The SEC’s Interest Gauge For Ethereum ETFs
Considering how prosperous Bitcoin ETFs have been, many industry observers are expecting the securities regulator to be more welcoming towards spot Ethereum ETFs.
In January, SEC commissioner Hester Peirce, known in the industry as “Crypto Mom”, stated that she strongly believes that the securities regulator would not repeat the same mistakes it made in the run-up to spot Bitcoin ETF approval. Even major crypto critic Jim Cramer highlighted that there is a very high likelihood that spot Ethereum ETF approval will come from the U.S. SEC very soon.
Unfortunately, the recent moves of the agency coupled with Gensler’s reaction to questions linked with spot Ethereum ETFs does not suggest that a greenlight is coming soon. Decisions on several applications have constantly been delayed because the regulator requires more time to reach a proper decision.
Gradually, the odds of having the offering in the coming months – or by May – pegged at above 50% earlier is now dwindling.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
