Investors were initially curious about Spot Ethereum Exchange Traded Funds (ETFs). However, after the approval of Bitcoin ETFs, these have now captured their full attention.
Benzinga gathered exclusive commentary from several experts to gauge the prospects for a spot Ethereum ETF approval this summer.
What Is The Current Status Of Spot Ethereum ETFs?
Tom Staudt, president and COO of ARK Invest, recently expressed confidence in the progression of Ethereum ETFs.
He cited the maturing dialogue with regulators and the sophistication of conversations surrounding the ETF, saying, “This is not the same place where we were on the timeline with Bitcoin at this stage.”
Staudt notes that potential issuers now possess greater legal, operational, and philosophical expertise, partly due to the successful approval of spot Bitcoin ETFs.
But skeptics warn of regulatory roadblocks and lingering doubts about Ethereum’s classification as a security. At the heart of the debate lies, once again, the Securities and Exchange Commission.
Will The SEC Play Ball?
Anndy Lian, an intergovernmental blockchain advisor, tells Benzinga that the SEC should act in the “best interest of the public and the crypto industry” by making a “timely and positive decision” on Spot ETH ETFs.
His comments highlight the widespread anticipation surrounding the potential ETF’s arrival, with both retail investors and institutional giants eager to gain exposure to the world’s second-largest cryptocurrency.
But the SEC had to be “dragged kicking and screaming” to approve one spot cryptocurrency ETF, he adds, and there is no guarantee a second one would be any easier.
Ethereum ETFs Could Spur “Full-Scale, Global Adoption”
The case for Ethereum is simple, according to Stijn Paumen, the founder of Helio.
He paints a vivid picture of a future transformed by Ethereum’s mainstream adoption. The ETF approval would be a catalyst for “full-scale, global adoption of cryptocurrency.”
Everyday purchases, from your morning coffee to online shopping sprees, could be made with a simple tap of your crypto wallet.
His infectious enthusiasm captures the transformative potential of blockchain technology and its ability to disrupt traditional financial systems.
Even Bitcoiners Think It’s Coming
Terrence Yang, managing director at Swan Bitcoin, acknowledges the inevitability of an ETH ETF, albeit somewhat grudgingly.
He concedes that legal precedents and the SEC’s recent Bitcoin approvals have tilted the scales in favor of Ethereum.
Indeed, as Decrypt reported, analysts agree that Bitcoin’s approval has set a precedent: Grayscale argued in court – and won – that the SEC could not approve a futures ETF and reject a spot ETF. Since futures Ethereum ETFs have already been approved, logic holds that a spot ETF would have to follow – as it did for Bitcoin.
So…When Ethereum ETF?
Chris Martin, head of research at Amberdata, a crypto data analytics firm, says an Ethereum ETF should come sooner rather than later.
Issuers will face two major challenges at the SEC:
- The SEC doesn’t have the public pressure it did for the Bitcoin ETF which means, they can take their time and don’t have to worry about passing all of the issuers at once
- The SEC is still pushing the security vs commodity stance without any clarity.
“Approving an Ethereum ETF may impact their current cases against Coinbase Inc and Binance, and may push them closer to defining their stance on cryptocurrencies,” he says.
Prediction markets agree, with Polymarket rating the probability of an approval by May 31 only at 54%.
Should the SEC grant its blessing, the implications for the financial landscape could be profound. Mass adoption may come a step closer after all.
What is the current status of Spot Ethereum ETFs, and how does it compare to the timeline of Bitcoin ETFs?
According to Tom Staudt, president and COO of ARK Invest, there is growing confidence in the progression of Ethereum ETFs. Staudt points to a maturing dialogue with regulators and increased expertise among potential issuers, influenced by the successful approval of spot Bitcoin ETFs. However, skeptics highlight potential regulatory roadblocks and uncertainties about Ethereum's classification.
How does Anndy Lian, an intergovernmental blockchain advisor, view the SEC's role in the approval of Spot ETH ETFs?
How do Bitcoiners, represented by Terrence Yang, view the inevitability of an ETH ETF?
Terrence Yang, managing director at Swan Bitcoin, acknowledges the inevitability of an ETH ETF, influenced by legal precedents and the SEC's recent approvals for Bitcoin. Despite some reluctance, Yang concedes that the scales are tilting in favor of Ethereum, especially considering the precedent set by Grayscale's court argument and victory.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.