- Last week, Ethereum made an attempt to surpass the $4,000 levels, but it encountered selling pressure at this point, leading to a partial retreat.
- Eleanor Terret noted that the optimism around the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) before May 23 has diminished.
- Terret stated that SEC Chairman Gary Gensler already believes that the approval of spot Bitcoin ETFs satisfies industry demands.
Decreasing Probability of Approval for Spot Ethereum ETFs in the U.S.: How Will ETH Price Be Affected? Here are the details!
Spot Ethereum ETFs Might Not Get Approval
Last week, Ethereum attempted to surpass the $4,000 levels, but it faced selling pressure at this point and partially retraced. Currently, the Ethereum (ETH) price is trading at $3,866 with a 2% decline, and the market cap is set at $464 billion. All eyes are now on the upcoming Ethereum Dencun upgrade set to go live on the mainnet this week. However, optimism surrounding spot Ethereum ETFs seems to be diminishing over time.
Fox Business Journalist Eleanor Terret shared her observations, stating that the optimism around the SEC’s approval of spot Ethereum ETFs before May 23 has decreased.
Discussions with knowledgeable individuals indicate that recent meetings have been largely one-sided, with issuers and supervisors actively pressuring SEC staff to expedite the process. However, SEC personnel seem less responsive or engaged in equally sensitive or meaningful discussions compared to the evaluation of spot Bitcoin ETF applications.
Terret expressed that SEC Chairman Gary Gensler already believes that the approval of spot Bitcoin ETFs satisfies industry demands. Additionally, prominent anti-crypto politicians like Senator Elizabeth Warren reportedly express dissatisfaction with the SEC’s approval of Bitcoin ETFs and actively oppose the possibility of Ethereum ETF approval.
Sources mentioned, “The staff seems very confused about this, and if nobody really knows what’s in their minds, they will have to start working soon if there is to be a chance.”
No Strong Correlation Between Spot and Futures ETFs
Bloomberg analyst Eric Balchunas highlighted that SEC staff has not provided any feedback to the applicant of the Ethereum spot ETF, unlike their participation during the evaluation of Bitcoin spot ETF. This lack of participation is negatively assessed, especially considering the notable correlation between Bitcoin spot and futures ETF approvals. However, the correlation between Ethereum spot and futures ETFs is not as strong, indicating a potentially less optimistic outlook for Ethereum ETF approval.
Despite some retracements in the Ethereum price, analysts remain hopeful for the continuation of the ETH rally. Analysts predict at least a 25% increase in Ethereum, reaching up to $5,000. However, it will be interesting to see how the bullish momentum continues after the Dencun Upgrade.
