Following the approval of spot Bitcoin ETFs by the SEC in January, attention shifted to Ethereum ETFs, with many expecting similar approval in the early months of the year. However, recent developments suggest that this likelihood has decreased.
Most analysts now believe that the SEC is unlikely to approve Ethereum ETFs in May. This view is supported by comments from ETF analyst Nate Geraci, who shared his thoughts on X (formerly Twitter). Geraci stated that the consensus in the market leans toward a delay in approving Ethereum ETFs and that he concurs with this outlook.
Geraci, the president of ETF Store, explained that the primary reason for the expected delay is a lack of communication between ETF issuers and the SEC. He also noted that this lack of interaction might be a consequence of the SEC’s handling of the spot Bitcoin ETF approval process, raising concerns about whether the SEC has learned from past experiences.
Geraci speculated that if the SEC fails to approve Ethereum ETFs, it could lead to legal action from the ETF issuer companies. He remarked, “Ethereum ETFs are eerily quiet… The consensus is that the SEC will not approve them in May. Reason = lack of interaction with issuers. Logic says this is true, but it also makes one wonder if the SEC has learned from the clown show by using BTC ETFs. Either way, the options are to either approve or sue.”