The likelihood of the US Securities and Exchange Commission (SEC) approving an Ethereum (ETH) spot exchange-traded fund (ETF) has increased significantly. diminished.
The likelihood of the US Securities and Exchange Commission (SEC) approving an Ethereum (ETH) spot exchange-traded fund (ETF) has increased significantly. diminished.
This is evident in market sentiment on platforms like Polymarket, where approval odds fell to 24%.
Despite optimism from the crypto community earlier this year, recent events indicate growing skepticism over the SEC’s approval of Ethereum ETFs, particularly in the lead-up to the expected May 23 decision date. .
Declining optimism
Fox Business reporter Eleanor Terrett has noted that there has been a significant change in mood regarding the SEC’s stance on Ethereum ETFs.
Insiders suggest that the SEC, under Chairman Gary Gensler, is less involved in discussions over Ethereum ETFs compared to their Bitcoin counterparts, hinting at possible satisfaction with the progress made with Bitcoin ETF approvals.
Additionally, political pressure from figures such as Senator Elizabeth Warren, who has expressed displeasure with the SEC’s approval of Bitcoin ETFs, appears to be influencing the regulator’s approach to Ethereum products.
Regulatory delays
The SEC has recently postponed its decision on several Ethereum ETF proposals, including those from financial giants BlackRock and Fidelity. This has set the stage for greater uncertainty even though market analysts expected such an outcome.
This delay indicates a cautious approach by the SEC, reflecting its previous hesitation with Bitcoin ETFs.
As Guru-Investingreported, Bloomberg senior analyst Eric Balchunas has tempered expectations for Ether ETFs, likening them to an opening act after a headliner. Jake Chervinsky, chief legal officer at Variant, speculated that the SEC’s cautious approach is influenced by political resistance and market volatility.
Despite this, the crypto industry remains hopeful and looks for signs of possible approval in the regulator’s future actions and comments.
