A seasoned legal expert claims that the SEC, the U.S. watchdog, received too many “political blowbacks” when Bitcoin spot ETFs were permitted in the country. Therefore, the most awaited event for investors in Ethereum (ETH) may still be months away.
“Political priorities” can prevent ETH ETF from being green-lit in 2024
According to Variant’s Jake Chervinsky, it seems doubtful that the U.S. SEC would authorise exchange-traded funds based on spot Ether (ETH) in 2024. Political pressure on the SEC leadership is what led to this unfortunate conclusion.
The SEC faced significant “political blowback,” Chervinsky continued, despite the fact that the U.S. court essentially ordered the agency to approve the Bitcoin spot ETFs launch in January 2023.
In this case, the SEC’s cooperation with the BTC ETF applications—in particular, BlackRock’s—has resulted in their acceptance.
As a result, if the SEC requests it, they will probably withdraw all of their applications for ETH ETFs and do all in their power to avoid getting into trouble with them.
https://x.com/jchervinsky/status/1763705594949570757?s=20
Now that “animal spirits” have complete power over the markets, the situation becomes even more adverse for Ether ETF.
“When, not if” approach still valid
The price of Ethereum (ETH), the second-largest cryptocurrency, has increased by more than 30% since Bitcoin ETFs were approved. It hit a high of almost $3,500 last week.
Chervinsky is certain that ETH ETFs will be authorised eventually, though:
“When, not if” seems like a fairly sensible approach in my opinion.
As previously reported by U.Today, James Seyffart of Bloomberg declared that he did not anticipate the Ether ETF to launch in March 2024.
