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The anticipation surrounding the approval of Ethereum ETFs has grown within the wake of the successful launch of Bitcoin (BTC) spot ETFs. The potential approval of ETH ETFs holds the promise of boosting the cryptocurrency’s value to new heights and attracting a broader vary of traders. 

However, based on Fox Journalist Eleanor Terret, optimism concerning the SEC’s approval of Ethereum ETFs by May twenty third is regularly diminishing. 

Ethereum ETFs Encounter ‘One-Sided’ Interactions

In a latest social media post, Terret illuminated the challenges confronted by issuers and custodians in partaking SEC employees and revealed potential elements influencing the decision-making course of.

Terret shared her observations, indicating that latest conversations with business insiders revealed a scarcity of significant engagement from SEC employees. 

Notably, Terret prompt that not like the discussions surrounding Bitcoin spot ETF applications, the place employees actively participated, the interactions concerning Ethereum ETFs have been “one-sided.”  Terret additional claimed:

Based on my conversations with individuals acquainted, conferences in latest weeks have been very a lot one sided, with issuers and custodians attempting to rally SEC employees to get the method rolling, however employees probably not partaking in significant methods like they did with the BTC spot ETF purposes.

Terret attributed this shift to SEC Chairman Gary Gensler’s perception that the approval of BTC spot ETFs already addressed business calls for. Additionally, influential anti-crypto politicians like Senator Elizabeth Warren have expressed their discontent with the SEC’s approval of Bitcoin ETFs, doubtlessly influencing the decision-making course of for Ethereum ETFs.

SEC Staff’s Stance Remains Elusive

According to Terret’s sources, understanding the SEC employees’s stance on Ethereum ETFs has confirmed difficult. There is uncertainty about their motivations and decision-making course of. However, the clock is ticking, and business gamers are hoping for the SEC employees to begin work quickly if approval is feasible. Terret famous:

One supply tells me: “Staff has been very hard to gauge on this and we’re not sure if anyone really knows what’s going on in their heads. But they’re going to have to start work soon if it’s going to have a shot.” May twenty third is slightly over 2 months away.

The waning optimism concerning the approval of Ethereum ETFs raises questions concerning the cryptocurrency market’s future. While the approval of BTC spot ETFs introduced renewed enthusiasm, the hesitance surrounding ETH ETFs could sign a extra cautious approach from the SEC. 

As of this writing, ETH has surged to a brand new two-year excessive of $4,067, experiencing a notable 4.5% upward development up to now 24 hours, in keeping with Bitcoin’s latest upward trajectory.

Featured picture from Shutterstock, chart from TradingView.com