The hope for a spot Ethereum (ETH) Exchange-Traded Fund (ETF) approval is fading fast, with the likelihood dropping to just 36%. This decline has cast a shadow over the crypto community’s optimism.
Despite the uncertainty surrounding its ETF approval, Ethereum’s market performance has been remarkable, surpassing the $4,000 mark on March 11. This surge is attributed to anticipation surrounding the upcoming Dencun upgrade and speculative approval prospects by the United States Securities and Exchange Commission (SEC).
SEC’s Changing Stance on Ethereum ETFs
Recent insights suggest a notable shift in the SEC’s stance on Ethereum ETFs, particularly under Chairman Gary Gensler’s leadership. The regulatory body appears to approach Ethereum differently than Bitcoin, potentially influenced by political pressure from figures like Senator Elizabeth Warren.
Political influences, notably from Senator Warren, have introduced additional scrutiny into the SEC’s approach to crypto ETFs. Warren’s vocal concerns about Bitcoin ETF approvals have likely contributed to the SEC’s cautious stance on Ethereum products.
Delays and Uncertainty Surrounding Ethereum
The SEC’s decision delays on various Ethereum ETF proposals, including those from industry giants BlackRock and Fidelity, have added to the prevailing uncertainty. Despite being expected by some market analysts, these postponements reflect the SEC’s skepticism, reminiscent of its initial hesitation with Bitcoin ETFs.
