In 2024, Bitcoin has seen a substantial gain of 67%, while Ethereum is not far behind with a 60% increase. This upward trend comes as the SEC’s first final deadline to decide on an Ethereum ETF approaches on Thursday.
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All eyes on Ether ETF
“Ethereum has taken the lead in the latest crypto rally ahead of Thursday’s first final SEC deadline to decide on an ETH ETF,” noted Ben Laidler, global markets strategist at eToro. “Although outright approval is unlikely, any indication of a path to eventual acceptance would be a significant advance.”
VanEck, ARK Investment Management, and seven other issuers have submitted filings to the SEC to list spot Ethereum ETFs. The SEC is expected to make a decision on VanEck’s and ARK’s applications by May 23 and May 24, respectively.
Joseph Edwards, head of research at Enigma Securities, referenced reports suggesting that the SEC had requested exchanges planning to list the Ethereum ETF to revise their filings. Additionally, separate Bloomberg ETF research indicated that analysts have increased their informal probabilities of approval.
An SEC spokesperson declined to comment on individual filings.
“Opposing the ETH ETF after approving the BTC one always seemed like a peculiar stance for the SEC, unless they were prepared to broadly address Ethereum’s securities status. It seems likely that the decision has been made to avoid that battle,” Edwards explained.
Ethereum spot ETF timeline
- Initial Filings (2018-2019):
- The first Ethereum ETF application is filed with the SEC by the Winklevoss twins, founders of the Gemini cryptocurrency exchange
- Several companies filed for Ethereum ETFs with the U.S. Securities and Exchange Commission (SEC) during this period.
- VanEck and SolidX submitted a joint application for a physically-backed Ethereum ETF.
- Rejections and Delays (2019-2020):
- The SEC consistently rejected Ethereum ETF proposals, citing concerns about market manipulation and custody.
- Bitwise Asset Management withdrew its application after facing multiple delays.
- Bitcoin ETF Precedent (2021):
- The approval of Bitcoin ETFs set a positive precedent for other digital assets.
- Investors hoped that Ethereum ETFs would follow suit.
- Grayscale Ethereum Trust (ETHE) (2021):
- While not an ETF, Grayscale’s ETHE became popular as a way to indirectly invest in Ethereum.
- However, direct ETF approval remained elusive.
- Spot Ether ETF Proposals (2022-2023):
- Companies like WisdomTree, Valkyrie, and VanEck filed applications for spot Ether ETFs.
- The SEC continued to scrutinize these proposals.
- Increased Optimism (2024):
- May 20, 2024: The U.S. Securities and Exchange Commission (SEC) requests updates on 19b-4 filings from potential ether exchange-traded fund exchanges, signaling progress towards potential approval.
- May 23, 2024: The SEC is expected to announce a decision on VanEck’s spot ether ETF application, a pivotal moment in the approval process.
- June 11, 2024: The SEC’s deadline to decide on the Franklin Ethereum ETF, adding to the series of key dates shaping the regulatory landscape for ETH ETFs.
- June 23, 2024: Another significant deadline set by the SEC to determine the fate of Grayscale’s Ethereum spot ETF, highlighting the ongoing evaluation of ETH ETF applications.
- November 2024: The upcoming U.S. presidential election introduces further uncertainty into the regulatory environment, potentially influencing decisions related to ETH ETF approvals.
- 2025: Recent updates suggest a potential extension of the approval timeline for spot Ethereum ETFs, with regulatory and political factors possibly delaying approvals beyond the previously speculated December 2025 timeframe.
Remember, the final deadline for the first wave of Ethereum ETF applications is anticipated to be May 23, 2024. As the crypto market evolves, investors eagerly await the SEC’s decision on Ethereum ETFs.
