Spot Ethereum ETF Approval: How Long Will US SEC Maintain Silence?

by

As a seasoned crypto investor, I’ve seen my fair share of regulatory delays and market fluctuations. The ongoing wait for the SEC’s approval of spot Ethereum ETFs is a familiar dance, one that leaves both issuers and investors on edge. Nate Geraci, President of ETF Store, shares my sentiment and even predicts approval by next week, but the lack of clear communication from the SEC keeps us all guessing.

The SEC’s deliberate approach towards approving or disapproving spot Ethereum ETF proposals is causing tension among issuers and keeping them on tenterhooks for an extended period. Meanwhile, Ethereum investors are eagerly anticipating a significant price surge once the regulatory decision is made.

Nate Geraci Predicts Timeline for Ethereum ETF Approval

As a crypto investor following the developments in the world of Ethereum ETFs, I’ve been keeping an eye on Nate Geraci, the President of ETF Store, who recently weighed in on the SEC’s review process for these funds. In his assessment, Geraci noted that the US Securities and Exchange Commission (SEC) appears to be handling spot Ethereum ETF S-1 filings much like 19b-4 forms. This approach, from my perspective as an investor, means that the SEC is maintaining a high level of confidentiality in their deliberations.

Although it’s quiet on the approval front, Geraci remains optimistic that it will be granted within the coming week. He expressed this belief with confidence, stating, “Approval seems imminent. There’s no justification for any further delay.”

It appears the SEC is playing the spot eth ETF S-1s similar to the 19b-4s…

*Extremely* tight-lipped.

Still think approval next week. Absolutely no reason for delay.

— Nate Geraci (@NateGeraci) July 12, 2024

SEC is making the same error as before with the rejection of spot Bitcoin ETFs, according to Geraci, quoting Commissioner Hester Pierce. Previously, Pierce had stated: “If these products had been introduced into the market in a more customary fashion, we could have avoided the current chaotic scenario.”

As a researcher following the developments in the world of Exchange-Traded Funds (ETFs) closely, I’ve noticed that Eric Balchunas, an ETF strategist at Bloomberg, has expressed his concerns about the Securities and Exchange Commission (SEC)’s silence on the applications for Ethereum ETFs. These forms were submitted by issuers as early as Monday of this week. The lack of response from the SEC leaves these issuers in a state of uncertainty regarding the reason for the delay.

“Balchunas commented that every issuer is prepared with their documents, yet they’re in a holding pattern, similar to a rain delay in baseball. He expressed optimism that things may move forward swiftly next week but acknowledged the persisting uncertainty. According to market rumors, issuers anticipate making one more submission for SEC approval.”

Top Players Accumulate ETH Before the ETF Approval

In recent weeks, major market participants and substantial Ethereum investors have been purchasing large amounts of ETH in anticipation of an ETF approval.

Thomas Perfumo, the strategic lead at Kraken, revealed that US Ethereum Exchange-Traded Funds (ETFs) experience approximately $1 billion in inflows monthly post-approval. Furthermore, major market players such as Justin Sun, Tron’s founder, have amassed a substantial $1.1 billion investment in Ethereum, preparing for an anticipated rally.

Based on current market conditions, as of now, Ethereum is priced at $3,123, representing a 1.25% increase from previous levels. With a market capitalization of approximately $375 billion, the cryptocurrency is showing promising signs for bullish investors. To initiate a significant bull run towards $4,000 and beyond, Ethereum enthusiasts must work together to push the price above the crucial resistance level at $3,200.

Read More

2024-07-13 07:39