The optimism surrounding the potential approval of Ethereum spot ETFs by the Securities and Exchange Commission (SEC) before May 23 is waning.
In a recent update on X, Fox reporter Eleanor Terrett disclosed that influential anti-cryptocurrency figures, including Senator Elizabeth Warren, are actively opposing the approval of ETH spot ETFs. Additionally, there’s limited enthusiasm from SEC staff members in promoting the product, as noted in Terrett’s Sunday post.
According to Terrett, discussions with individuals familiar with the matter indicate that recent meetings have been largely one-sided. Despite efforts by industry stakeholders to encourage SEC staff to hasten the approval process, there hasn’t been significant engagement from staff members compared to their response to Bitcoin spot ETF applications.
SEC Believes it has Satisfied Crypto Industry with Bitcoin ETFs
Terrett reported that SEC Chair Gary Gensler appears to believe that he has already satisfied industry demands with the approval of Bitcoin spot ETFs.
Moreover, notable anti-crypto figures in politics, like Senator Warren, who were already discontent with the SEC’s green light for BTC ETFs, are now actively mobilizing against a similar outcome for Ethereum.
Terrett cited a source who highlighted the difficulty in gauging the position of SEC staff, adding to the uncertainty surrounding their decision-making process.
Nevertheless, the source stressed that for the ETH spot ETF to stand a chance at approval, SEC staff must initiate their efforts promptly, given that the May 23 deadline looms just over two months away.
“They’re going to have to start work soon if it’s going to have a shot.”
In January, Senator Warren voiced criticism against the SEC following the agency’s approval of spot Bitcoin ETFs.
“If the SEC is going to permit crypto to embed itself even further into our financial system, then it becomes more imperative than ever for crypto to adhere to fundamental anti-money laundering regulations,” she remarked at the time.
Gensler Remains Silent About ETH ETFs
When questioned about the possibility and timeline for the approval of Ethereum ETFs last month, Gensler indicated that the process would mirror the approach taken for Bitcoin (BTC) ETFs. However, he refrained from providing specific details or a potential timeframe.
On February 6, the SEC delayed its decision on the Invesco Galaxy Ethereum ETF, following a similar delay in December regarding Invesco’s ETF application.
The SEC has also postponed decisions on other Ethereum ETF applications, including those from prominent firms like Grayscale, Fidelity, and BlackRock, the world’s largest asset management company.
Additionally, other firms such as VanEck and Hashdex are also seeking approvals for Ethereum ETFs, with Franklin Templeton being the latest asset manager to file a spot Ethereum ETF application.
In the meantime, institutions based in Hong Kong are actively gearing up to introduce spot ETFs for Ethereum, aiming to secure an advantage over counterparts in the United States.
It’s noteworthy that demand for spot Bitcoin ETFs in the US has continued to be robust since their introduction.
Last week, the cumulative net inflow of Bitcoin spot ETFs exceeded $2.24 billion, driving the price of Bitcoin to achieve new all-time highs. The total assets under management of Bitcoin ETFs presently amount to $55.34 billion.
