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SEC’s Approval of Ethereum Spot ETFs Facing Challenges
Optimism surrounding the Securities and Exchange Commission’s (SEC) approval of Ethereum spot ETFs by May 23 is diminishing. Influential anti-cryptocurrency politicians, including Senator Elizabeth Warren, are actively opposing the passage of ETH spot ETFs.
SEC Staff Engagement
- Meetings with SEC staff have been one-sided, with limited engagement in promoting ETH spot ETFs.
- Industry stakeholders are pushing for expedited processes, but staff members are not showing meaningful engagement.
SEC’s Stance on Crypto Industry
SEC Chair Gary Gensler believes that the approval of BTC spot ETFs has satisfied the crypto industry. However, influential anti-crypto politicians are rallying against a similar outcome for ETH.
Uncertainty and Challenges
- Gauging the stance of SEC staff has been challenging, leaving uncertainty about their thought process.
- If the ETH spot ETF has any chance of approval, SEC staff will need to commence their work soon.
Recent Developments
Recent delays and postponements in decisions regarding Ethereum ETF applications:
SEC Decisions
- SEC postponed decisions on Invesco Galaxy Ethereum ETF and applications from firms like Grayscale, Fidelity, and BlackRock.
- Other firms like VanEck, Hashdex, and Franklin Templeton are seeking Ethereum ETF approvals.
Global Trends
Global institutions, including those in Hong Kong, are actively preparing to launch spot ETFs for Ethereum to gain a competitive edge over the United States.
Market Impact
Demand for spot Bitcoin ETFs in the US remains strong, with significant net inflows and total assets under management:
Bitcoin ETFs Performance
- Cumulative net inflow of Bitcoin spot ETFs surpassed $2.24 billion last week.
- Total assets under management of Bitcoin ETFs currently stand at $55.34 billion.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
