With the U.S. Securities and Exchange Commission (SEC) approving 11 spot Bitcoin exchange-traded funds (ETFs) on January 10, the path is now clear for spot Ethereum ETFs to be approved.
With the U.S. Securities and Exchange Commission (SEC) approving 11 spot Bitcoin exchange-traded funds (ETFs) on January 10, the path is now clear for spot Ethereum ETFs to be approved in 2024, according to Bloomberg ETF analyst Eric Balchunas.
Balchunas believes there is a 70% chance that spot Ether ETFs will be approved by May, the month the SEC must make a final decision for several applications. Balchunas previously stated that he could not see a scenario where spot Bitcoin ETFs are approved but spot Ether ETFs are not. He compared the two cryptocurrencies, saying that "Ether spot is tied to the hip of Bitcoin spot."
The earliest deadline for spot Ethereum ETFs decision is in May later this year for VanEck’s Ethereum ETF. BlackRock’s deadline is in August, however if the SEC does approve, it could approve all applicants like it did for the spot Bitcoin ETFs.
Prior to the SEC's spot Bitcoin approval, Valkyrie Funds' chief investment officer Steven McClurg said he wouldn't be surprised if spot Ether and XRP ETFs come to market after Bitcoin. Several major asset managers, including BlackRock, VanEck, ARK Invest & 21Shares, Fidelity, and Invesco Galaxy, have filed applications for spot Ether ETFs. The SEC must make decisions on these applications by various dates ranging from May 23 to August 7.
Following the Bitcoin ETF approval, Ethereum (ETH) gained 8.5% over the past 24 hours, and rallied over 15% in the past week, breaking above the $2.5K level, as investors speculate on the potential of a spot Ether ETF approval.
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