The Ethereum (ETH) community has been eagerly awaiting news of the spot approval of the Ethereum Exchange-Traded Fund (ETF), which is scheduled to occur by May.
However, speculation about a possible approval is growing as the U.S. Securities and Exchange Commission (SEC) has remained conspicuously silent on the matter.
This speculation is fueled by the lack of concrete details about the approval process, which has investors and enthusiasts worried and excited.
Bitcoin Maxi weighs in on approval of Ethereum spot ETF
In the Ethereum ETF debate, notable voices from the cryptocurrency space have offered their perspectives.
Max Keizer, a famous Bitcoin maximalist and advisor to the President of El Salvador, recently express Skepticism about SEC’s cautious approach to approving Ethereum ETF.
Kaiser, known for his staunch defense of Bitcoin and skepticism about alternative cryptocurrencies, has dismissed Ethereum as a “proof-of-stake scam” and suggested it lacks the regulatory support needed for SEC approval.
The SEC is right not to approve the Ethereum (ETH) ETF.
This is a proof-of-stake scam that does not meet all the requirements required by the SEC. https://t.co/nLz8boTGtW
— Max Keiser (@maxkeiser) April 11, 2024
Keiser’s sentiments echo those of Eric Balchunas, senior ETF analyst at Bloomberg. He recently shared a conservative outlook on the likelihood of the ETH spot ETF receiving regulatory approval.
Balchunas estimated the odds of approval at just 25%, further adding to the uncertainty surrounding the prospects for the Ethereum ETF.
For Eth ETF approval, we are holding the line at a 25% probability, even though it is a very pessimistic 25%. Lack of engagement seems like both purposefulness and procrastination. No matter where you look, there are no positive signs or information. Personally I hope they approve it, but it just doesn’t look good. https://t.co/nuBdCDE18L
— Eric Balchunas (@EricBalchunas) March 25, 2024
VanEck CEO Jan Van Eck also expressed expectations that Ethereum ETF applications may be rejected, citing lengthy regulatory reviews and a lack of clarity from the SEC.
Spot ETH ETF garners foreign regulatory attention
Amid uncertainty surrounding the US SEC’s stance on Ethereum ETFs, the report suggests a contrasting regulatory environment in Hong Kong.
Hong Kong regulators will soon approve exchange-traded funds that invest directly in Bitcoin and Ethereum, signaling a potential shift in global regulatory attitudes toward cryptocurrency investment products, according to Bloomberg.
If approved, these ETFs could provide investors with a new avenue for exposure to digital asset markets. Several companies are ready to launch ETFs pending regulatory approval from the Securities and Futures Commission.
Among potential issuers awaiting approval are the international arm of Chinese asset manager Harvest Fund Management Co. and a partnership between Bosera Asset Management (International) Co. and HashKey Capital.
Subject to regulatory approval, these companies have announced their intention to launch ETFs investing in BTC and ETH, underscoring the growing demand for cryptocurrency investment products in global markets.
Featured image by Unsplash, chart by TradingView