Let us discuss the potential of a spot Ethereum exchange-traded fund (ETF) getting approved sometime this year as the US Securities and Exchange Commission (SEC) just recently delayed the BlackRock spot Ethereum ETF application a day ahead of the deadline, which is on January 25th, 2024.
According to the SEC, the delay was necessary to clear up the need to review the proposed rule changes, similar to the subsequent delays before the authorization of the long-awaited spot Bitcoin ETFs on January 10th.
Bloomberg ETF Analyst: Spot Ethereum ETF Delays Will Continue To Happen Sporadically
While the recent approval of Bitcoin spot ETFs on January 10th was a positive development for the crypto industry, applications for Ethereum spot ETFs may expect similar hurdles, and additional regulatory requirements may delay its approval.
According to Bloomberg ETF Analyst James Seyffart, while the securities regulator must make a final decision by August 7th, Seyffart predicted that a conclusion will be announced on all pending spot Ethereum ETFs by May 23rd.
Read: BlackRock Plans An Ethereum ETF, But It Will Be A Hard Sell
SEC Commissioner: The Potential Ethereum ETF Approval Would Be “A Lot Different”
Hester Peirce sat down in an interview with Coinage Media and gave her opinion on the Ethereum ETF getting approved. And according to Peirce, the landscape will be hugely different than when we had the Bitcoin spot ETF approval.
For context, the first Bitcoin spot ETF application was sent to the SEC in 2013, and the crypto industry did not get a Bitcoin Futures ETF approval until 2021. Following a lengthy process, the long-awaited approval of Bitcoin spot ETFs has finally come to fruition, but that was because Grayscale went and sued the SEC for not approving its application to convert its Bitcoin trust (Grayscale Bitcoin Trust) into an ETF. Fast forward, Grayscale won the case, and Chairman Gary Gensler was essentially pressured to approve the first wave of spot Bitcoin ETFs on January 10th.
In an interview clip, Commissioner Peirce said they should not need the courts to force the SEC to approve the Bitcoin spot ETF. And with regards to the Ethereum spot ETFs, Peirce hopes that the recent approvals will set a precedent in the crypto industry, and we will see crypto companies essentially come forward, apply, and get those ETFs approved.
“We need to be applying regular consideration to these products. The same kind of consideration that we apply to similar products and, so, we shouldn’t need a court to tell us that our approach is arbitrary and capricious for us to get it right,” Peirce stated.
Final Thoughts
In conclusion, the approval of a spot Ethereum ETF is still murky, and the regulatory landscape for this type of ETF will be unique from that of the Bitcoin spot ETFs. However, with Commissioner Peirce’s recent statements and the growing demand for crypto investment products, we may see more progress on Ethereum spot ETFs soon.