Concerns are rising regarding the potential approval of Ethereum spot ETFs by the Securities and Exchange Commission (SEC) before May 23, according to insights shared by Fox reporter Eleanor Terrett.
In a recent post on X, Terrett revealed that influential figures, including Senator Elizabeth Warren, are actively opposing the passage of ETH spot ETFs. Additionally, SEC staff members have shown limited enthusiasm for promoting the product.
Terrett noted a one-sided dynamic in recent meetings, where industry stakeholders attempted to urge SEC staff to expedite the process. However, staff members’ engagement has been lacking compared to their involvement with Bitcoin spot ETF applications.
SEC Chair Gary Gensler is reportedly of the belief that the industry has been sufficiently appeased with the approval of Bitcoin spot ETFs. Moreover, influential anti-crypto politicians, such as Senator Warren, who were already discontented with the approval of BTC ETFs, are rallying against a similar outcome for ETH.
Assessing the stance of SEC staff has proven challenging, with uncertainty surrounding their thought process. However, a source highlighted that for the ETH spot ETF to have any chance of approval, SEC staff must commence their work promptly, considering the looming May 23 deadline.
Gensler has remained silent on the topic of ETH ETFs, stating previously that the process would mirror that of Bitcoin ETFs without offering specifics or a potential timeline.
In February, the SEC postponed its decision on the Invesco Galaxy Ethereum ETF, following a delay in December regarding Invesco’s ETF application. Similar deferrals have been seen with other Ethereum ETF applications from notable firms like Grayscale, Fidelity, and BlackRock.
Meanwhile, firms like VanEck and Hashdex are seeking Ethereum ETF approvals, with Franklin Templeton being the latest asset manager to file a spot Ethereum ETF application.
Amidst these developments, Hong Kong-based institutions are gearing up to launch spot ETFs for Ethereum, aiming to gain an advantage over the United States.
Demand for spot Bitcoin ETFs in the US remains robust since their launch, with the cumulative net inflow surpassing $2.24 billion last week and propelling Bitcoin prices to new highs. The total asset under management of Bitcoin ETFs currently stands at $55.34 billion.