Ethereum ETF Approval Next on SEC’s List? Analyst Predicts 60% Chances by May

The crypto world is abuzz with excitement as analyst James Seyffart hints at a 60% chance of the Securities and Exchange Commission (SEC) giving the nod to Ethereum (ETH) exchange-traded funds (ETFs). This is a high-stakes game – experts are closely watching the SEC’s move and what it means for the market.

So, is Ethereum on the cusp of mainstream adoption? Will the SEC finally say “yes”? Dive in to find out.

Optimism STILL Runs High

While the cryptocurrency community awaits the SEC’s ruling on Ethereum ETFs, there’s a prevailing hypothesis suggesting a potential replay of history. Drawing parallels from the scenario with Spot Bitcoin ETFs, it is posited that the SEC might initially reject the proposal only to greenlight it by the critical May 23, 2024, deadline.

Amidst the prevailing uncertainty, optimism surfaces through Geoffrey Kendrick, who places trust in the SEC’s historical stance on Ethereum. Crucially, in legal encounters with cryptocurrency entities, the SEC has refrained from classifying Ether as a security. This optimistic outlook gains further support from Ethereum’s designation as a regulated futures contract on the Chicago Mercantile Exchange (CME).

Also Read: Approval for Ethereum ETFs Coming Soon? Key Challenges You Should Know

Industry Experts and Reports

In a recent interview with Scott Melker, Seyffart shed light on the SEC’s initial delay but believes it will eventually lead to Ethereum ETF approval. He decodes strategies the SEC could draw, such as Proof of Stake (PoS) vs. Proof of Work (PoW), potentially delaying the decision. Making it direct, reports from TD Cowen suggest a potential delay until 2025 or 2026, aligning with the SEC’s cautious approach in the current U.S. political climate.

Understanding the Broader Implications

Seyffart is less confident in Ethereum ETF approval than Bitcoin ETFs, with odds around 60%. The SEC’s decision will extend beyond Ethereum, impacting the entire crypto market. The approval of Bitcoin ETFs notably influenced Bitcoin’s price, and a similar response is expected for Ethereum after ETF approval. 

Ethereum co-founder Joseph Lubin and BlackRock CEO Larry Fink are on board with an SEC-approved spot Ethereum ETF. Lubin says ETFs are more efficient than other financial tools, shining a light on Ethereum’s role in transactions and storage. Interestingly, Fink, after BlackRock’s Bitcoin ETF success, is now cheering for an Ethereum ETF.

Countdown to May 23

With the May 23 deadline approaching, the crypto community is holding its breath for the SEC’s decision. This could be a turning point, restoring faith in the SEC and setting a new course for Ethereum. If the nod happens, brace for a ripple effect on ETH’s price, similar to the pre-Bitcoin ETF approval days. Seyffart thinks Ethereum’s value could soar, maybe hitting $4,000.

A noteworthy point – after ETF approval, ETH might face less selling pressure compared to BTC. Why? Because Ethereum’s slice in the Grayscale Ethereum Fund is smaller than Bitcoin’s in the Grayscale Bitcoin Fund. Plus, there are fewer shares held by the FTX bankruptcy estate, hinting at a potentially smoother ride for Ethereum after the ETF green light.

This Might Interest You: Weekly Spot Bitcoin ETF Report: Insights After Its Second Trading Week