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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Mar 12, 2024 06:20 UTC
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Ethereum ETF Approval Dims as SEC Stalls: What are the Odds Now?
Approval for a spot Ethereum ETF by the SEC seems unlikely (35% chance).
This is a big drop from earlier predictions (70%).
Reasons include lack of progress, political pressure, and the SEC's cautious approach.
The awaited approval for a spot Ethereum ETF by the U.S. Securities and Exchange Commission has hit a snag, with Bloomberg ETF analysts lowering the odds to just 35%, a significant drop from earlier expectations. Political pressures and a lack of progress are the main culprits, casting uncertainty on the fate of the Ethereum ETF.
Changing Sentiments
The approval prospects for a spot Ethereum ETF have taken an unexpected turn, with Bloomberg Senior ETF Analyst Eric Balchunas slashing the odds to 35%. This marks a sharp decline from initial optimism, raising questions about potential challenges beyond market dynamics.
Fellow analyst James Seyffart, initially optimistic at 60-65%, now expresses diminishing hope, noting a parallel with the changing sentiment around Bitcoin ETF approval odds.
Also Read: SEC Delays BlackRock’s Ethereum ETF for Deeper Dive into Legal and Policy Issues
Alarm Bells are Ringing!
Investment experts caution that the absence of modifications in recent Ethereum ETF applications echoes patterns seen in past Bitcoin ETF approvals. Negative indicators, such as a shortage of market makers and SEC statements, raise concerns about the regulatory stance. GSR, a crypto market-making firm, even contemplates lowering approval odds without positive changes in the coming weeks.
Political Pressure
Political pressures from figures like Senator Elizabeth Warren contribute to the SEC’s cautious approach. Regulatory obstacles, combined with a deliberate pace, make the SEC a conservative body hesitant to approve Ethereum ETFs.
The delayed decisions of banking giants BlackRock and Fidelity further add to the uncertainty, as noted by analysts like Jake Chervinsky, Variant’s Chief Legal Officer.
Deadlines Loom
The SEC’s cautious stance may be linked to political opposition and a strategic approach to learning from past cryptocurrency ETF approval mistakes. Balancing innovation and market stability is the SEC’s aim, apparently.
With the May 23 deadline approaching, the initial enthusiasm surrounding Ethereum ETF approval has transformed into uncertainty. Political resistance, market volatility, and regulatory caution create a complex landscape, leaving market participants and enthusiasts eagerly awaiting their fate.
This Might Interest You: Top Memecoins to Buy Before Ethereum ETF Approval
The following weeks hold all the answers. We can’t wait – can you?
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