Summary
The Securities and Exchange Commission (SEC) has delayed decisions on spot ether ETFs, including those from Fidelity and BlackRock. Experts have differing opinions on when a spot ether ETF could launch. Bloomberg Intelligence analyst James Seyffart believes there is a 60% chance of approval in May, while TD Cowen expects approval in late 2025 or early 2026. TD Cowen argues that SEC Chair Gary Gensler may be hesitant to approve a spot Ethereum ETF due to backlash from progressive Democrats over the approval of a spot Bitcoin ETF. On the other hand, Standard Chartered believes ether ETFs could be approved as early as May 23, as they expect the SEC to follow a similar process as the bitcoin ETFs. The timeline for approval remains uncertain, but many believe it is only a matter of time before an ether ETF is launched.
Key Points
1. The Securities and Exchange Commission recently delayed decisions on spot ether ETF applicants, including Fidelity and BlackRock. Experts have differing opinions on when a spot ether ETF could be approved, with Bloomberg Intelligence analyst James Seyffart estimating a 60% chance of approval in May and TD Cowen expecting approval in late 2025 or early 2026.
2. TD Cowen believes that the decision to approve or deny ether ETFs is political, suggesting that SEC Chair Gary Gensler may not approve a spot Ethereum ETF due to backlash from progressive Democrats over the approval of a spot Bitcoin ETF earlier this month.
3. On the other hand, Standard Chartered believes that ether ETFs could begin trading on May 23, stating that the SEC’s strategy for Ethereum ETF applications is likely to replicate the process followed for Bitcoin ETFs. They also highlight the structural similarities between the two cryptocurrencies.