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The U.S. watchdog SEC received too many "political blowbacks" after having Bitcoin spot ETFs approved in the United States, seasoned legal expert says. As such, the most anticipated event for Ethereum (ETH) investors might be months away.
"Political priorities" can prevent ETH ETF from being green-lit in 2024
The U.S. SEC is unlikely to approve exchange-traded funds based on spot Ether (ETH) in 2024, Variant's Jake Chervinsky says. This sad outcome is caused by political reasons that put the SEC leadership under pressure.
I am a lot less confident about ETH ETF approval this year than many of you are.
— Jake Chervinsky (@jchervinsky) March 1, 2024
The SEC got a ton of political blowback for approving BTC ETFs, even though the court basically forced it to.
Now animal spirits are in control of the market, and an ETH ETF would only add to that.
Even though the U.S. court basically forced the SEC to authorize the Bitcoin spot ETFs launch in January 2023, the regulator received strong "political blowback," Chervinsky added.
In this situation, the BTC ETFs approval is the fruit of collaboration between the SEC and ETFs applications, especially BlackRock.
As such, they will do their utmost to avoid conflict with the SEC and, most likely, will withdraw all ETH ETF applications should the SEC ask them to do so.
The context becomes even more hostile for Ether ETF given the fact that "animal spirits" took full control over the markets now.
"When, not if" approach still valid
Since the approval of Bitcoin ETFs, Ethereum (ETH), the second largest cryptocurrency, added over 30% in price. Last week, it peaked over $3,500.
However, Chervinsky is sure that ETH ETFs will be approved sooner or later:
“When, not if” seems like a very reasonable take to me
As covered by U.Today previously, Bloomberg's James Seyffart announced that he did not expect Ether ETF to go live in March 2024.