TL;DR
- The Securities and Exchange Commission’s (SEC) approval for Ethereum spot ETFs by May 23 is uncertain due to resistance from anti-crypto politicians, including Senator Elizabeth Warren. The SEC staff has shown little interest in advocating for the product.
- Gary Gensler, the SEC Chair, feels that he has already satisfied the industry with the approval of Bitcoin spot ETFs. Anti-crypto politicians are campaigning against a similar result for Ethereum.
- The SEC has delayed decisions on several Ethereum ETF applications, including those from notable companies like Grayscale, Fidelity, and BlackRock. The process for ETH ETF approval would be similar to that of Bitcoin ETFs.
The hope for the Securities and Exchange Commission’s (SEC) approval of Ethereum spot ETFs by May 23 is fading. Prominent politicians who are against cryptocurrency, including Senator Elizabeth Warren, are actively resisting the approval of ETH spot ETFs.
Eleanor Terrett, a reporter for Fox, disclosed that the SEC staff has shown little interest in advocating for the product. She noted that recent meetings have been largely one-sided based on her discussions with those in the know. Despite efforts from industry stakeholders to hasten the SEC staff’s process, the staff has not demonstrated the same level of involvement as they did with Bitcoin spot ETF applications.
🚨SCOOP: Optimism about the @SECGov approving the $ETH spot ETFs by May 23rd is waning.
Based on my conversations with people familiar, meetings in recent weeks have been very much one sided, with issuers and custodians trying to rally SEC staff to get the process rolling, but…
— Eleanor Terrett (@EleanorTerrett) March 10, 2024
Gary Gensler, the SEC Chair, feels that he has already satisfied the industry with the sanction of BTC spot ETFs. Anti-crypto politicians like Senator Warren, who were previously unhappy with the SEC’s approval of BTC ETFs, are campaigning against a similar result for ETH.
A source cited by Terrett stated that understanding the SEC staff’s position has been difficult, leading to uncertainty about their thought process. However, the source stressed that if the ETH spot ETF is to be approved, the SEC staff must start their work soon, given that the May 23 deadline is just over two months away.
The Impact of Anti-Money Laundering Regulations on Spot Ethereum ETFs
In January, Senator Warren expressed her disapproval of the SEC after the agency approved spot Bitcoin ETFs. She emphasized the importance of cryptocurrency adhering to basic anti-money laundering regulations if the SEC allows it to penetrate further into our financial system.
When asked about the likelihood and timeline for ETH ETF approval last month, Gensler stated that the process would be similar to that of Bitcoin (BTC) ETFs. However, he avoided giving any specific details or a potential timeframe.
On February 6, the SEC delayed its decision on the Invesco Galaxy Ethereum ETF, following a postponement in December regarding Invesco’s ETF application. The SEC has also put off decisions on other Ethereum ETF applications, including those from notable companies like Grayscale, Fidelity, and BlackRock, the world’s largest asset management firm.
Despite the negative aura surrounding the potential approval of a Spot Ethereum ETF, the price of ETH continues its upward trend, trading at $4,045, up 3% in the last 24 hours, according to CoinMarketCap.
