The chances of an Ethereum Exchange-Traded Fund (ETF) gaining approval from regulators have significantly dropped to 36%, disappointing the cryptocurrency community. This decrease in approval odds follows the successful approval of spot Bitcoin ETFs earlier in January 2024, which had raised hopes for Ethereum ETFs.
Despite the uncertainty surrounding ETF approval, Ethereum’s market performance has been impressive, reaching over ,000 on March 11. This surge in value is attributed to expectations of the upcoming Dencun upgrade and speculation about the SEC approving a spot ETF for Ethereum.
However, the optimism surrounding Ethereum ETF approval has been met with a harsh reality check. Prediction platform Polymarket now indicates a 36% chance of approval, down from 24% earlier on the same day. This shift in sentiment could be attributed to the SEC’s evolving stance under Chairman Gary Gensler, who seems to be more cautious about Ethereum ETFs compared to Bitcoin.
Political influences, particularly from figures like Senator Elizabeth Warren, have added to the scrutiny surrounding Ethereum ETFs. Warren has raised concerns about the SEC’s approach to Bitcoin ETFs, potentially influencing the regulator’s handling of Ethereum products.
The SEC’s decision delays on various Ethereum ETF proposals, including those from BlackRock and Fidelity, have only added to the uncertainty in the market. These postponements reflect the regulator’s skepticism, similar to its initial hesitation with Bitcoin ETFs.
The crypto community is eagerly awaiting the deadline of May 23, which could be a turning point for Ethereum’s integration into mainstream finance. Despite the challenges and setbacks, the future of Ethereum remains uncertain as stakeholders closely watch regulatory developments.
