Last week, Bitcoin ETFs celebrated their stock market debut in the USA. Now the crypto scene is hoping that Ethereum ETFs will also be approved soon. This optimism is reflected in the price performance of Ethereum.
When the US Securities and Exchange Commission (SEC) gave the green light for Bitcoin ETFs last Wednesday, the price curve of Ethereum (ETH) started to move. With a weekly gain of around 15%, Ethereum is currently trading above USD 2,500, its highest level since May 2022. The reason for the momentum of the second most important global cryptocurrency ETH is obvious: now that Bitcoin has paved the way for ETFs, the door could also open for Ethereum ETFs.
Around half a dozen applications for Ethereum ETFs have been submitted to the SEC by big names such as BlackRock, VanEck and Grayscale. After years of attempts, they recently managed to push the SEC to approve Bitcoin ETFs. The stock market debut of Bitcoin ETFs attracted huge interest and analysts expect positive effects from capital inflows for BTC in the medium and long term. It is hoped that this scenario will also be mirrored by Ethereum.
However, observers are not unanimous in their predictions. After all, SEC Chairman Gary Gensler commented skeptically on the approval for Bitcoin ETFs. The approval should “in no way” mean that the SEC is ready to set standards for the listing of crypto ETFs, said Gensler. The decision only affected “a non-security Bitcoin”. The SEC classifies the majority of cryptocurrencies as securities and wants to enforce strict regulation. Bitcoin, the mother of all cryptocurrencies, enjoys special treatment from the SEC.
On the other hand, Ethereum Future ETFs are already being offered in the USA, albeit with moderate success. In the case of Bitcoin, future ETFs were the precursor to the current ones, which are traded on the basis of the spot price. This is why Antoni Trenchev, co-founder of the crypto exchange Nexo, for example, sees the approval of Ethereum ETFs as a matter of time and considers this year to be likely. Other experts such as Anthony Scaramucci from SkyBridge Capital, on the other hand, believe that with Gensler at the helm of the SEC, no concessions are to be expected. Other observers also believe that only the US presidential elections at the end of 2024 and the subsequent possible replacement of the SEC chair could trigger a rethink at the SEC.
Conclusion: Ethereum ETFs in May at the earliest
The excitement surrounding Bitcoin ETFs has not even died down yet and the crypto scene is already setting its sights on Ethereum ETFs as its next target. For the SEC, May 23, 2024 is probably the date on which it will be forced by time constraints to take a position on Ethereum ETFs. It remains to be seen whether Ethereum will then be considered equal to Bitcoin by the SEC.