FameEX Hot Topics | Analyst Predicts Delays for Ethereum ETFs, Suggesting SEC Approval Might Extend to 2025

Eric Balchunas, a senior Bloomberg ETF analyst, recently expressed doubt about the U.S. Securities and Exchange Commission (SEC) approving spot ethereum ETFs anytime soon. In an interview, he highlighted several challenges facing the approval process, despite recent approvals of spot bitcoin ETFs. 

Balchunas pointed out that while the SEC had approved several spot bitcoin ETFs after legal pressure from Grayscale in 2022, the situation for ethereum ETFs looks different. He mentioned that Grayscale's aggressive legal stance was unique due to its limited involvement in ETFs, unlike other firms that might be hesitant to confront the SEC due to broader business considerations.

The analyst cited the uncertain regulatory status of ETH and ongoing investigations into the Ethereum Foundation as additional complications. Notably, a recent court document revealed that the SEC is probing whether ether should be considered a security. Furthermore, SEC Chair Gary Gensler has not clarified ether's status despite inquiries from 48 lawmakers, adding to the uncertainty.

Balchunas also discussed the potential impact of the upcoming U.S. election on the cryptocurrency regulation landscape. He speculated that a victory by former President Donald Trump could lead to a change in SEC leadership, possibly making the regulatory environment more favorable to cryptocurrencies. If a more crypto-friendly SEC chair were appointed, the prospects for ethereum ETFs could improve.

However, Balchunas cautioned that even with a favorable outcome in the presidential election, any new applications for ethereum ETFs would still face a lengthy approval process. He estimated that if a new chair took office in spring and filings were quickly submitted, the SEC might not make a decision until around December 2025. He further noted that while Trump has shown some support for the crypto community, his previous SEC chair, Jay Clayton, did not approve a bitcoin ETF, suggesting that Trump's administration might not automatically lead to a crypto-friendly SEC.

Balchunas’s insights underscore the complex interplay of regulatory, legal, and political factors that influence the approval of cryptocurrency ETFs in the U.S. While the recent approval of bitcoin ETFs marks a significant milestone, ethereum and other cryptocurrencies still face a challenging road ahead in securing similar treatment under current U.S. regulations.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.