- SEC May Approve Ethereum ETFs by May 23, Says Standard Chartered Bank.
- Ethereum’s Non-Security Classification and CME Listing Bolster Approval Prospects.
- Regulatory Path for Ethereum ETFs Appears Streamlined, Despite Short-Term Hurdles.
According to Standard Chartered Bank analysis, the Securities and Exchange Commission (SEC) is prepared to approve spot Ethereum exchange-traded funds (ETFs) in a manner akin to that of approving spot Bitcoin (BTC) ETFs. It is anticipated that approval will be given by the first final deadline of May 23.
Ethereum ETFs Are Being Delayed, But Approval Is Still Likely.
The head of Standard Chartered Bank’s currency and digital asset research, Geoffrey Kendrick, reportedly told The Block that they anticipate pending applications for spot Ethereum ETFs to be granted on May 23, which is thought to be the same date as January 10 for Bitcoin ETFs.
In addition, Kendrick projects that Ethereum might trade as high as $4,000 by the deadline if prices follow a path akin to Bitcoin’s before to ETF certification.
Based in part on the SEC’s categorization of ether as a non-security in its legal actions against cryptocurrency businesses, Kendrick further supports the establishment of spot Ethereum ETFs.
The prospect of acceptance is further strengthened by the fact that Ethereum is listed on the Chicago Mercantile Exchange (CME) as a regulated futures contract.
In a similar vein, financial lawyer Scott Johnsson provided some insight into the possible Ethereum ETF path. While long-term clearance for spot Ethereum ETFs is quite likely, Johnsson stressed that there could be short-term delays because of ongoing regulatory actions involving the stock exchanges Coinbase and Binance.
Shorter Approval Process For ETH ETFs?
Using Bitcoin as an example, Johnsson outlined the regulatory road from a basic spot digital asset to a spot ETF offering. According to Johnsson, the process of creating Bitcoin required seven years and involved several phases as well as setbacks.
Though applications are still being accepted for both spot and futures ETFs, Johnsson pointed out that the Ethereum timescale is shortening. He mentioned a few requirements, such Step 3—which calls for the SEC to formally approve the futures ETF under 19b–4—that Johnsson thinks could no longer be required for spot certification.
Johnsson outlined two essential elements to comprehend the SEC’s present strategy for approving future applications, including Ethereum. The threshold question was first addressed by him in regard to the Grayscale verdict, which was centered on correlation analysis.
Second, Johnsson highlighted the SEC’s perspective, which is constrained by the most recent BTC approval order and takes into account factors including intraday trading data, a long sample period, consistency over the course of the sample period, and connection with the CME.
Although the precise criterion for adequacy is yet uncertain, the Bitcoin correlation analysis falls within a reasonable range. According to Johnsson, it is thus anticipated that Ethereum will probably reach this level in the near future.
Johnsson thinks that permission for spot Ethereum ETFs will probably come soon after the necessary degree of correlation is met, with May being the anticipated month of approval.
In general, industry observers and specialists indicate that, absent significant regulatory changes, the SEC’s approval of spot Ethereum ETFs is just a matter of time.
Following in the footsteps of Bitcoin, ETH is presently trading at $2,370, up more than 2% over the last 24 hours and more than 7% over the last seven days.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.