Big players in the financial markets have been seeking the SEC nod for the approval of a spot Ethereum ETF, after the successful launch of a similar investment product for Bitcoin earlier this year. However, two spot Bitcoin ETF issuers – VanEck and CoinShares – have cast doubt on the SEC’s approval of spot Ethereum ETF.

Will Spot Ethereum ETF Come In 2024?

The U.S. SEC has a deadline of May 23 to conclude its review for a spot Ethereum ETF. Last month in March, the SEC delayed its decision on Ether ETF applications from big players like BlackRock, Fidelity, etc.

But speaking at the Paris Blockchain Week crypto event, VanEck CEO Jan Van Eck toned down his expectations of the SEC approval. Speaking to CNBC’s Arjun Kharpal, he said:

“We were the first to file as well for Ethereum in the U.S., and we and [Ark Invest CEO] Cathy Wood, are kind of the first in line for May, I guess, to probably be rejected. The way the legal process goes is the regulators will give you comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs — and right now, pins are dropping as far as Ethereum is concerned”.

CoinShares CEO Jean-Marie Mognetti expressed keen interest in Ethereum’s regulatory developments during an interview with CNBC on Tuesday. Mognetti revealed that CoinShares closely monitored Ethereum’s progress, drawing parallels to their involvement in the Bitcoin ETF approval process.

Mognetti recalled CoinShares’ late entry into the Bitcoin ETF race, which ultimately led to their successful qualification shortly before approval. However, he tempered expectations regarding the likelihood of a swift approval for an Ethereum-based ETF.

“I don’t see anything being approved this side of the year,” Mognetti remarked, indicating skepticism regarding SEC approval for proof of stake, a blockchain-specific protocol.

However, last week, banking giant JPMorgan said that the SEC will eventually approve the spot Ethereum ETF, if not this May. JPMorgan strategists led by Nikolaos Panigirtzoglou stated:

“If there is no spot Ethereum ETF approval in May, then we assume there is going to be a litigation process after May. We believe that the most likely scenario is that the SEC eventually loses this litigation (similar to what happened with the Grayscale and Ripple legal battles last year), which means that eventually, the SEC will approve spot Ethereum ETFs (but not as soon as this May).”

ETH Price Rally to Continue?

The Ethereum price has registered a strong bounce back gaining 10% over the past week and shooting past $3,700. Over the last month, the Ethereum supply from the exchanges has been dropping considerably. As per sources, nearly $1.2 billion worth of liquidity has been pulled off from the spot market hinting at a bullish sign. If this supply shock supports, the ETH price could rally further to $4,000.

The post VanEck and CoinShares Cast Doubt on SEC’s Approval of Spot Ethereum ETF appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am