Uncertainty Looms Over Approval of Ethereum Spot ETF, Says Forbes Reporter

Ethereum logo and ETF

Forbes reporter Eleanor Terrett sheds light on the waning optimism surrounding the Securities and Exchange Commission’s (SEC) approval of the Ethereum (ETH) spot exchange-traded fund (ETF) before May 23. Anti-cryptocurrency sentiments from figures like Senator Elizabeth Warren and limited engagement from SEC staff have contributed to the uncertainty.

A Diminished Sense of Optimism

Forbes reporter Eleanor Terrett has indicated a diminishing sense of optimism surrounding the Securities and Exchange Commission’s (SEC) approval of the Ethereum (ETH) spot exchange-traded fund (ETF) before May 23. According to Terrett, anti-cryptocurrency figures like Senator Elizabeth Warren are actively opposing the passage of the ETH spot ETF, while SEC staff have shown limited enthusiasm for the proposal.

In a recent X post, Terrett revealed insights gleaned from conversations with sources familiar with the matter, suggesting that recent meetings between ETF issuers, custodians, and SEC staff have been largely one-sided. While stakeholders have been pushing for progress, SEC staff have not engaged meaningfully, unlike their involvement in discussions regarding Bitcoin (BTC) spot ETF applications.

She wrote: “SCOOP: Optimism about the @SECGov approving the $ETH spot ETFs by May 23rd is waning.”

Industry Demand Satisfaction

The lack of substantive engagement from SEC staff has raised questions about the agency’s stance on the ETH spot ETF. Some speculate that SEC Chairman Gary Gensler may feel that the approval of BTC spot ETFs has already satisfied industry demands, leading to less urgency regarding the approval of ETH ETFs.

Complicating Potential Approval Process

Moreover, influential anti-crypto figures, including Senator Warren, have expressed opposition to expanding ETF approval to include Ethereum. Their objections, combined with internal dynamics within the SEC, have further complicated the approval process for the ETH spot ETF.

One source highlighted the challenge of deciphering SEC staff’s intentions, emphasizing the need for proactive action to ensure the proposal stands a chance. With the May 23 deadline drawing closer, stakeholders are eager for clarity on the SEC’s position and the prospects for approval of the Ethereum spot ETF.

Author: Candace

Candace loves the arts. She holds some bitcoins.