Ethereum ETF Approval Faces Political Challenges
According to a seasoned legal expert, the Securities and Exchange Commission (SEC) in the United States faced significant political backlash following the approval of Bitcoin spot ETFs.
This could potentially delay the anticipated approval of Ethereum (ETH) ETFs for several months. The expert suggests that political considerations may hinder the green-lighting of ETH ETFs in 2024, as the SEC is under pressure due to these reasons.
I am a lot less confident about ETH ETF approval this year than many of you are.
The SEC got a ton of political blowback for approving BTC ETFs, even though the court basically forced it to.
Now animal spirits are in control of the market, and an ETH ETF would only add to that.
— Jake Chervinsky (@jchervinsky) March 1, 2024
Despite a court order that compelled the SEC to authorize the launch of Bitcoin spot ETFs in January 2023, there were notable political repercussions, the expert explained. The approval of BTC ETFs was the result of collaboration between the SEC and ETF applicants, notably BlackRock.
To maintain amicable relations with the SEC, it’s likely that these entities would withdraw all ETH ETF applications if requested. The current market environment, characterized by heightened speculative activity, further complicates the prospects for an Ether ETF.
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Despite Ethereum’s price surge of over 30% since the approval of Bitcoin ETFs, reaching a peak of over $3,500 last week, the expert remains confident that ETH ETFs will eventually receive approval.
It’s a matter of “when, not if,” according to their assessment. Bloomberg’s James Seyffart also suggested that an Ether ETF is unlikely to launch in March 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
