Ethereum Spot ETFs Approval Delayed Until 2025: Report

Key Points:

• The SEC may reject Ethereum spot ETFs applications until 2025 due to Ethereum’s unclear regulatory status.
• If Trump wins a second term, the SEC may adopt a more crypto-friendly stance, potentially benefiting Ethereum spot ETFs.
• If Biden wins, issuers may pause and reassess their strategies post-election.

According to DLNews, The SEC might reject Ethereum spot ETFs until 2025 due to regulatory concerns, says Bloomberg analyst. The US election outcome could impact this, with a Trump win potentially favoring crypto.

Bloomberg ETF analyst Eric Balchunas has forecasted that the U.S. Securities and Exchange Commission (SEC) may reject applications for Ethereum spot ETFs on May 23, with potential approval not expected until 2025.

Possible Rejection of Ethereum Spot ETF Applications

The lack of engagement with prospective issuers and Ethereum’s unclear regulatory status have contributed to this pessimistic outlook. This view has been further influenced by a recent SEC investigation into the Ethereum Foundation.

Upon rejection, prospective ETF issuers, such as BlackRock, Fidelity, or Ark Invest, have a choice to either follow Grayscale’s path and sue the SEC or to refile their applications at a later date.

Notwithstanding, the upcoming US election could be a game-changer. If Donald Trump wins a second term, the SEC may face a leadership change, potentially leading to a more crypto-friendly stance.

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Impact of Upcoming US Election on Crypto Regulations

However, the likelihood of repeated lawsuits against the SEC, especially for Ethereum ETFs, seems slim. The thereof is mainly due to the financial and attention costs associated with lawsuits and the potential risk of alienating the SEC.

Balchunas further suggests that if Trump wins the election, it could bring about a friendlier environment for crypto and spot ETFs. But, if Joe Biden wins, issuers may take a break and reassess their strategies after the election.