Ethereum ETF approval expected soon, Coinbase says.

seat Ethereum Exchange-traded funds (ETFs) could hit the market sooner than expected, Coinbase said, despite growing pessimism from industry observers.

In a note this week, the largest U.S. cryptocurrency exchange said “Given the SEC’s silence on the issuer, there is uncertainty about timely approval,” but it is only a matter of time before these products hit the market.

There long list Top asset managers including VanEck, BlackRock, and Franklin Templeton have filed paperwork with the Securities and Exchange Commission to launch an Ethereum ETF.

These products provide investors with exposure to: ETHIt is the second largest digital coin by market capitalization with shares traded on stock exchanges.

But Wall Street’s biggest regulators have been slow to respond to applicants and delayed decision deadlines. This reflects their initial approach to confirm Bitcoin ETF approval before finally pulling the trigger in January.

This is generally normal during the ETF application process, but the SEC’s reluctance to comment on investment vehicles has led analysts like Bloomberg and CoinShares to say Such cryptocurrency funds will not receive approval until the May deadline.

“As cryptocurrencies begin to become an electoral issue, our view is also unclear on whether the SEC will be willing to front the political capital needed to support a veto,” said David Han, institutional research analyst at Coinbase. He said.

He added, “Even if the first deadline of May 23, 2024 is dismissed, I think it is highly likely that the decision will be overturned through litigation.”

Last year, cryptocurrency fund manager Grayscale won the appeal In a significant case, a lawsuit was filed against the SEC to convert a Bitcoin fund into a spot ETF.

The SEC reluctantly approved 11 Bitcoin ETFs on January 10th. The investment product has since become a huge success, attracting billions of dollars in capital.

Editor: Andrew Hayward