Attorney Scott Johnsson has indicated that the United States Securities and Exchange Commission (SEC) might greenlight a spot Ethereum (ETH) exchange-traded fund (ETF) by May 2024, drawing parallels to the recent success of spot Bitcoin ETFs. Johnsson, basing his forecast on the SEC’s swift action on Bitcoin ETFs, expects a similar trajectory for Ethereum. However, he notes that this timeline could stretch to mid-2025 if there are unexpected delays.
Ethereum ETF: Anticipating SEC’s Seal of Approval
Johnsson, sharing his analysis on a personal platform, underscored the SEC’s rapid advancement from initial comments on Bitcoin ETFs to the completion of registration statements and final nods within a 90-day window. With a critical decision date looming on May 23, Johnsson suggests that Ethereum ETFs might enjoy an equally expedited review, thanks to the regulatory framework already established.
Despite an upbeat forecast, Johnsson cautions about potential variations in the SEC’s approach. He notes the possibility of an extended commentary period and further scrutiny of 19b-4 filings, which could impede the anticipated timeline for Ethereum ETFs.
Bloomberg’s ETF expert James Seyffart offers a differing opinion. He contends that the SEC might expedite the Ethereum ETF approval process, given the precedent set by Bitcoin ETFs. Seyffart interprets the SEC’s current quietude as indicative of a faster track to approval for Ethereum.
The prospect of SEC approval has garnered considerable attention, with industry giants such as Fidelity, Invesco, and BlackRock seeking approval for their Ethereum ETF products, signaling a growing investor appetite.
Divergent Views on Timeline for Ethereum ETF Decision
While some experts like Valkyrie’s Chief Investment Officer Steven McClurg project a potential delay past May 2024, they maintain a bullish stance on eventual approval. McClurg alludes to the intricate nature of Ethereum ETF statements, hinting at an elongated approval process. Ripple CEO Brad Garlinghouse, meanwhile, remains optimistic about the future of spot cryptocurrency ETFs and predicts the eventual introduction of a variety of such funds.