Just over a month after SEC Chairman Gary Gensler's vote approved 11 spot bitcoin ETFs, the crypto industry is hopeful for a spot ether ETF by as early as May 2024. According to FOX Business interviews, the sentiment for the world’s second-largest digital asset is positive across the crypto sector, securities lawyers, and traditional finance. Despite some skepticism about ether's legal status and support compared to bitcoin, legal experts believe the precedent set by the bitcoin ETFs paves the way for ether ETFs. They argue the SEC would struggle to justify a denial.
The approval of bitcoin ETFs followed a successful appeal by Grayscale against the SEC, marking a significant moment for crypto. This led to discussions with major financial players about launching similar products for bitcoin, such as the spot ether ETF. The ether ETF applications from giants like BlackRock and Fidelity signal strong interest from Wall Street. Ethereum's unique aspects and its futures market, which already exists, strengthen the case for a spot ether ETF.
However, concerns remain, including Gensler's ambiguous stance on ether's legal classification and the implications of Ethereum's shift to a proof-of-stake mechanism. Some believe an SEC approval for ether ETF might be ambitious in 2024, possibly delayed until post-election due to political considerations. The SEC has not commented specifically on the matter.
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