While Bitcoin soared to record heights last week, Ethereum attempted to surpass the $4,000 mark but saw its value decrease to $3,866, a 2% decline, with a market capitalization of $464 billion. In the face of market uncertainty, anticipation for a potential Ethereum spot ETF has declined significantly.
Ethereum ETF Approval Hopes Diminish
Journalist Eleanor Terret from Fox Business, who gained prominence during the Bitcoin ETF discussions, reported a decline in confidence that the U.S. Securities and Exchange Commission (SEC) would greenlight an Ethereum spot ETF. Contacts close to the matter have indicated one-sided meetings, with issuers urging the SEC to speed up the approval process without much reciprocation from the agency’s officials.
The SEC’s stance appears less accommodating than it was with spot Bitcoin ETF applications, with little to no substantive dialogue taking place during meetings. This has led to confusion among applicants about the SEC’s intentions. Terret noted that while SEC Chairman Gary Gensler had fulfilled the market demand for spot Bitcoin ETFs, the current response for Ethereum’s equivalent is less promising.
The SEC’s Unresponsive Attitude
Eric Balchunas, a Bloomberg analyst, pointed out the SEC representatives have not provided feedback to entities that have filed for an Ethereum spot ETF, despite previously evaluating Bitcoin spot ETFs. The perceived correlation between the approvals of Bitcoin spot and futures ETFs does not seem to extend to Ethereum, casting doubt on the likelihood of an Ethereum spot ETF being approved anytime soon.
In conclusion, the lack of enthusiasm from the SEC and the weak correlation between Ethereum spot and futures ETFs have diminished the optimism for an Ethereum ETF approval in the near future.