The anticipation surrounding the approval of Ethereum ETFs has grown in the wake of the successful launch of Bitcoin (BTC) spot ETFs. The potential approval of ETH ETFs holds the promise of boosting the cryptocurrency’s price to new heights and attracting a broader range of investors. 

However, according to Fox Journalist Eleanor Terret, optimism regarding the SEC’s approval of Ethereum ETFs by May 23rd is gradually diminishing. 

Ethereum ETFs Encounter ‘One-Sided’ Interactions

In a recent social media post, Terret illuminated the challenges faced by issuers and custodians in engaging SEC staff and revealed potential factors influencing the decision-making process.

Terret shared her observations, indicating that recent conversations with industry insiders revealed a lack of meaningful engagement from SEC staff. 

Notably, Terret suggested that unlike the discussions surrounding Bitcoin spot ETF applications, where staff actively participated, the interactions regarding Ethereum ETFs have been “one-sided.”  Terret further claimed:

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 staff not really engaging in meaningful ways like they did with the BTC spot ETF applications.

Terret attributed this shift to SEC Chairman Gary Gensler’s belief that the approval of BTC spot ETFs already addressed industry demands. Additionally, influential anti-crypto politicians like Senator Elizabeth Warren have expressed their discontent with the SEC’s approval of Bitcoin ETFs, potentially influencing the decision-making process for Ethereum ETFs.

SEC Staff’s Stance Remains Elusive

According to Terret’s sources, understanding the SEC staff’s stance on Ethereum ETFs has proven challenging. There is uncertainty about their motivations and decision-making process. However, the clock is ticking, and industry players are hoping for the SEC staff to commence work soon if approval is possible. Terret noted:

One source tells me: “Staff has been very hard to gauge on this and we’re not sure if anyone really knows what’s going on in their heads. But they’re going to have to start work soon if it’s going to have a shot.” May 23rd is a little over 2 months away.

The waning optimism regarding the approval of Ethereum ETFs raises questions about the cryptocurrency market’s future. While the approval of BTC spot ETFs brought renewed enthusiasm, the hesitance surrounding ETH ETFs may signal a more cautious approach from the SEC. 

As of this writing, ETH has surged to a new two-year high of $4,067, experiencing a notable 4.5% upward trend in the past 24 hours, in line with Bitcoin’s recent upward trajectory.

Featured image from Shutterstock, chart from TradingView.com