SEC Might Approve Ethereum ETF in May : Predicts Bloomberg

In light of the recent landmark approval of 11 spot Bitcoin ETFs on January 10, 2024, the cryptocurrency landscape is buzzing with anticipation of a probable approval of Ethereum’s spot ETFs later this year. 

Analysts are expressing optimism about Ethereum’s prospects, with Bloomberg ETF analyst Eric Balchunas estimating a 70% likelihood of approval by May. This article delves into the implications of Bitcoin ETF approval on Ethereum, the prevailing sentiments among analysts, and the major contenders seeking regulatory approval for Ethereum spot ETFs.

Analyst Insights and Market Sentiments

The green light has been given to Bitcoin ETFs paving the pathway for new opportunities and innovations in the cryptocurrency market. 

Eric Balchunas, senior ETF analyst at Bloomberg, asserts, “The Ether spot is tied to the hip of Bitcoin spot for sure. It’s gonna go wherever it goes. It’s essentially on a 15-foot rope following it.”

Eric Balchunas, previously cautious about approving spot Bitcoin ETFs, now holds an optimistic outlook for Ethereum. Citing insights from industry insiders, he suggests that spot Ether ETFs are likely to receive approval. 

Additionally, digital asset lawyer Joe Carlasare envisions Ethereum spot ETFs gaining approval this year, albeit with a timeline potentially exceeding initial expectations. Carlasare posits that the SEC may meticulously shape a precedent for approving digital asset ETFs while retaining discretionary powers.

New Deadline Fuels Speculation

With multiple Ethereum spot ETF applications, including those from VanEck, Ark 21Shares, and Hashdex, requiring SEC decisions by the end of May, the industry is on edge awaiting outcomes. May 23, 2024, marks the final deadline for VanEck’s spot Ethereum ETF decision, heightening anticipation.

Joe Carlasare anticipates that Ethereum spot ETFs may not commence trading until the third quarter of 2024. However, Hashdex, one of the applicants, remains optimistic about an earlier timeline, suggesting that spot Ether products could begin trading as early as the second quarter.

Ether experienced a 3% price surge post-approvals, surpassing $2500 for the first time since May 2022, reflecting around 7% increase in the past 24 hours.

SEC Decision Deadlines

Several prominent financial institutions and asset management firms, including ARK 21Shares, BlackRock, Fidelity, Grayscale, Hashdex, Invesco Galaxy, and VanEck, have submitted applications for Ethereum spot ETFs. The SEC must make decisions on these applications by specific deadlines:

• VanEck: May 23
• ARK 21Shares: May 24
• Hashdex: May 30
• Grayscale: June 18
• Invesco: July 5
• Fidelity: August 3
• BlackRock: August 7

The approval of spot Bitcoin ETFs has infused optimism into the cryptocurrency market, paving the way for Ethereum spot ETFs. Analysts and industry experts foresee favourable outcomes, with Eric Balchunas estimating a 70% chance of approval by May.