The US watchdog SEC received too many “political setbacks” after Bitcoin spot ETFs were approved in the United States, says an experienced legal expert. As such, the most anticipated event for Ethereum (ETH) investors could be months away.
The US watchdog SEC received too many “political setbacks” after Bitcoin spot ETFs were approved in the United States, says an experienced legal expert. As such, the most anticipated event for Ethereum (ETH) investors could be months away.
‘Political priorities’ may prevent ETH ETF from getting the green light in 2024
The US SEC is unlikely to approve spot Ether (ETH)-based exchange-traded funds in 2024, says Variant’s Jake Chervinsky. This sad result is due to political reasons that put pressure on the leaders of the SEC.
Although the US court basically forced the SEC to authorize the launch of Bitcoin spot ETFs in January 2023, the regulator received strong “political blowback,” Chervinsky added.
In this situation, the approval of BTC ETFs is a result of collaboration between the SEC and ETF applications, especially BlackRock.
As such, they will do their best to avoid conflicts with the SEC and will most likely withdraw all ETH ETF applications if asked to do so by the SEC.
The context becomes even more hostile for Ether ETF given that now “animal spirits” have taken full control of the markets.
The “when, not if” approach is still valid
Since the approval of Bitcoin ETFs, Ethereum (ETH), the second largest cryptocurrency, has risen more than 30% in price. Last week, it reached a high of over $3,500.
However, Chervinsky is sure that ETH ETFs will be approved sooner or later:
“When, not if” seems like a very reasonable interpretation to me.
As Guru-Investingpreviously reported, Bloomberg’s James Seyffart announced that he did not expect the Ether ETF to be available in March 2024.
