Is the Ethereum ETF Expected to Be Approved? Industry Insiders Hold Optimistic View

More than a month after the approval of 11 Bitcoin spot ETFs by the chairman of the U.S. Securities and Exchange Commission (SEC), the crypto industry now expects that an Ethereum spot ETF may receive similar approval as early as May.

According to reports, there is a generally optimistic outlook in the industry regarding the approval prospects for the world's second-largest digital asset spot product in 2024. This view is shared not only by the cryptocurrency industry but also by some securities lawyers and traditional financial institutions.

However, there are also skeptics. Some point out that the SEC chairman has previously had a somewhat ambiguous stance on the legitimacy of Ethereum, believing it may be an unregistered digital security, and thus not suitable for an ETF. Another concern is that, compared to Bitcoin, Ethereum lacks sufficient foundational and institutional support in the financial industry.

Nevertheless, several securities lawyers have stated that the legal precedents established during the approval process of Bitcoin spot ETFs provide a blueprint for the approval of Ethereum ETFs. A blockchain professor believes that when the same factors from the Bitcoin spot ETF approval process are also at play here, the SEC will find it difficult to present new arguments to reject the Ethereum spot ETF.

Due to a cryptocurrency asset management company winning a lawsuit in court, nearly ten spot Bitcoin ETFs were approved on January 10th. This ruling is seen as a significant watershed moment for the cryptocurrency industry and has become a signal for other issuers to launch Bitcoin spot products.

Industry insiders believe that another reason the SEC may have a positive attitude towards Ethereum spot ETFs this year is the growing demand from major Wall Street firms. Several companies managing trillions of dollars in assets have applied to launch Ethereum spot ETFs.

Some experts point out that the existence of the Ethereum futures market is another reason why the SEC may find it difficult to reject a spot Ethereum ETF. They believe that CME Ethereum futures provide a supervisory tool to guard against spot market manipulation, which could be a key factor in approving a spot Ethereum ETF.

However, there are also views that the SEC's approval of an Ethereum spot ETF in 2024 is overly optimistic. Some point out that the SEC chairman's ambiguous stance on whether Ethereum is a security is a dangerous signal. After Ethereum upgraded to a PoS mechanism in 2022, some industry insiders speculate that this could affect its standing in the eyes of the SEC.

Despite the controversy, most analysts believe that the SEC will ultimately approve the Ethereum spot ETF, although the timeline may be pushed back until after the November elections. Regardless, this topic will remain a focal point for the cryptocurrency industry and regulators.