Anticipation Builds for Ethereum ETF Approval Despite Regulatory Hurdles.
The crypto community, particularly Ethereum (ETH) enthusiasts, is eagerly anticipating the possibility of an Ether exchange-traded index fund (ETF). Following the recent approval of Bitcoin ETFs by the Securities and Exchange Commission (SEC), optimism abounds regarding the potential green light for an Ethereum ETF.
The excitement surrounding the prospect of an Ethereum ETF was reflected in the ETH price, briefly surging to the $2,700 mark. However, in the aftermath of a market correction, Ether experienced a more pronounced decline and is currently trading at just under $2,300.
Amidst this enthusiasm, internal resistance within the SEC has become apparent. Sources with connections to the SEC suggest concerns about a negative sentiment toward an Ether ETF, primarily because Ethereum cannot be valued strictly as a commodity.
Republican SEC Commissioner Hester Pierce emerges as a positive advocate for the approval of additional crypto ETFs. Pierce advocates for a regular evaluation process for new crypto ETFs to avoid delays experienced with Bitcoin ETFs, preventing any further damage to the SEC’s image. Alongside colleagues Mark Uyeda and SEC Chief Gary Gensler, Pierce played a pivotal role in facilitating the approval of Bitcoin ETFs. However, Gensler’s perspective, which historically categorized Bitcoin as a security as opposed to other cryptocurrencies, could pose a significant hurdle.
Despite differing opinions within the SEC, there remains hope that an Ether ETF might materialize by the end of the summer. Notably, the classification of Ether as a “commodity” by the Commodity Futures Trading Commission (CFTC) provides additional support for those optimistic about the ETF’s eventual approval.