Following the approval of multiple spot Bitcoin ETFs, industry experts have been speculating on the potential approval of a similar product for Ethereum, the second-largest cryptocurrency by market cap.
In a tweet yesterday, Fox Business journalist Eleanor Terrett highlighted the opinions of top ETF issuers, SEC insiders, and investment managers regarding the potential approval of an Ethereum spot ETF.
Fox Journalist Shares Opinions of Top Insiders
Notably, one of the sources that commented on the matter is a BTC spot issuer with an Ethereum spot ETF application.
According to Terrett, the source speculated that the smooth launch of multiple Bitcoin ETFs in the US two weeks ago would compel the SEC to approve spot ETH exchange-traded products.
On the contrary, another unidentified source told the pro-crypto journalist that there is internal resistance at the SEC over approving such funds.
In addition, a source stated that the potential approval of a spot Ethereum ETF might occur in the Summer.
To support this assertion, the source points to the SEC’s approval of multiple Ethereum futures ETFs last year and BlackRock’s successful track record for getting ETFs approved as potential factors that could compel the regulator into approving spot Ethereum funds.
Interestingly, the top journalist asked the source whether SEC Chair Gary Gensler’s position about ETH being a potential security would affect the chances of an Ethereum spot ETF approval.
Responding, the source said the fact that the CFTC believes Ethereum falls under its regulatory purview, coupled with Ripple’s partial victory against the SEC in July 2023, would make it difficult for Gensler to opine that most crypto assets are securities going forward.
Furthermore, Terrett cited comments from SEC Commissioner Hester Peirce about the potential approval of a spot Ethereum ETF.
During an interview with Coinage yesterday, Peirce disclosed that the commission does not intend to delay its decision on the multiple applications for spot Ethereum ETFs.
Notably, Peirce was among the three SEC commissioners who voted to favor a spot Bitcoin ETF.
Deaton Reacts, Tells XRP Holders to Take a Bow
As expected, Terret’s tweet about the potential approval of a spot Ethereum ETF stirred reactions from prominent crypto experts.
Pro-crypto lawyer John Deaton reacted to a portion of the tweet where a source claimed that Ripple’s victory and CFTC’s position regarding ETH would make it difficult for Gensler to assume that most crypto assets are securities.
Commenting on the statement, Attorney Deaton asked XRP holders to take a bow.
“coupled with @Ripple’s partial court victory with $XRP not being a security during secondary market transactions” will make it an uphill battle for @GaryGensler.#XRPHolders take a ?♂️ https://t.co/Ce05f8Vshi
— John E Deaton (@JohnEDeaton1) January 23, 2024
All Eyes on Potential Approval of Ethereum Spot ETFs
Meanwhile, the industry’s focus is currently on whether the SEC would approve Ethereum spot ETFs the same way it approved similar applications for Bitcoin two weeks ago.
The list of applicants seeking to launch spot Ethereum ETFs is dominated by asset management companies that recently received the regulatory green light from the SEC to offer Bitcoin spot exchange-traded products.
Some of the asset managers include BlackRock, Fidelity Investments, ARK 21Shares, VanEck, and Grayscale. According to Bloomberg ETF analyst Eric Balchunas, there is a 70% chance that the SEC would approve at least one or multiple Ethereum spot ETFs in May 2024.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
