The approval date for the Ethereum ETF is set for May 23, when ETH is expected to reach $4,000.
The Securities and Exchange Commission (SEC) is prepared to follow a similar approach to a spot Ethereum ETF approving a spot Bitcoin (BTC) exchange-traded fund (ETF). approval It is expected to be approved on May 23, the initial final deadline, according to a Standard Chartered banking analysis.
Ethereum ETF Delayed, Approval Still Possible
According to report Geoffrey Kendrick, head of foreign exchange and digital assets research at Standard Chartered Bank, said The Block’s pending application for a spot Ethereum ETF is expected to be approved on May 23, which is considered the same date as January 10 for the Bitcoin ETF. He said he expected it.
Furthermore, Kendrick predicts that if Ethereum’s price follows a similar trajectory to Bitcoin leading up to ETF approval, Ethereum could trade as high as $4,000 by a given date.
Kendrick further supports approval of a spot Ethereum ETF based on the SEC’s classification of ether. non-secure Legal action against crypto companies.
Additionally, the fact that Ethereum is listed as a regulated futures contract on the Chicago Mercantile Exchange (CME) adds weight to expectations of approval.
Along the same lines, financial lawyer Scott Johnsson provided insight into the potential possibilities. roadmap In the case of Ethereum ETF. Johnson emphasized that long-term approval for a spot Ethereum ETF is likely, but there could be short-term delays due to ongoing regulatory actions involving the Coinbase/Binance stock exchanges.
A shorter path to ETH ETF approval?
Johnson highlighted Taking Bitcoin as an example, this is the regulatory path from a regular spot digital asset to a spot ETF offering. Johnsson pointed out that the Bitcoin process took seven years, involving multiple stages and disapprovals.
However, Johnsson noted that Ethereum’s timeline is being compressed, with applications open for both futures and spot ETFs. He proposed certain prerequisites that Johnsson believes may no longer be necessary for spot approvals, such as Step 3, which would require the SEC to issue a formal 19b-4 approval for futures ETFs.
Johnsson highlighted two key factors for understanding the SEC’s current approach to future approvals, including Ethereum. First, he discussed the threshold problem in the following context. Grayscale rulingEmphasis was placed on correlation analysis.
Second, Johnsson highlighted the SEC’s view following the recent BTC approval order that it considers correlation with the CME, long sample period, intraday trading data, and consistency across sample periods.
Although the specific threshold for sufficiency is not yet known, Bitcoin’s correlation analysis is within an acceptable range. Therefore, Ethereum is expected to meet this requirement. maximum In the near future, Johnson suggests.
Once the necessary level of correlation is achieved, Johnsson believes approval for a spot Ethereum ETF will follow shortly thereafter, with May being the expected month for approval.
Overall, industry analysts and experts suggest that the SEC’s approval of a spot Ethereum ETF is only a matter of time, barring any major legal changes.
ETH is currently trading at $2,370, up more than 2% in the last 24 hours and more than 7% in the last 7 days, following Bitcoin.
Featured image from Shutterstock, chart from TradingView.com
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