- Ethereum ETF’s chance of approval drops thanks to the latest SEC updates
- Matt Hougan believes Ethereum ETFs should be launched in December for optimal asset attraction
The probability of Ethereum [ETH] The number of approved Spot ETFs has declined, mainly due to the lack of updates in public filings and limited involvement with the SEC. While there is still a chance before May, the likelihood is decreasing as no clear progress has been made in the approval process.
However, many in the industry remain optimistic about an eventual approval, citing parallels with the Bitcoin ETF. Echoing similar sentiments, Matt HouganCIO of Bitwise Asset Management commented in conversation with Bankless:
“My view is that we will eventually get an Ethereum ETF. I think the new Fidelity update is probably the best opportunity the ETH world has ever had for a Bitcoin ETF, so I think we’ll get it eventually.”
ETFs timing dynamics
Hougan further emphasized that the approval of cryptocurrency ETFs follows a 240-day review cycle, which typically concludes in May – a crucial time for SEC decisions. He added,
“I think Ethereum ETFs will attract more assets if they launch in December than if they launch in May.”
This idea comes from institutions still adapting to the launch of Bitcoin ETF. Therefore, the launch towards the end of the year is seen as more practical, potentially leading to the collection of more assets.
Now, some executives have likened a potential Ethereum Spot ETF to just an opening act. In fact, they believe that a disappointing performance of Ethereum Futures is a negative indicator.
Contrary to the sentiment, however, Hougan said:
“Ethereum ETFs will be much more successful than Ethereum Futures.”
Looming concerns surrounding Ethereum ETF
Despite not generating the same level of initial excitement as Bitcoin, the executive remains optimistic about the potential success of Ethereum ETFs. He projects that these ETFs will attract billions of dollars in their first year, although their growth trajectory is expected to be slower compared to Bitcoin.
“I think they will be very successful and you will have BlackRock and you will have Bitwise and others will talk about Ethereum and best practices.”
He added,
“I think it will be broadly additive to space, but I don’t think it will be $50 billion in the first year, it will be billions. It will be a success.”
According to Ryan RasmussenCEO of Bitwise, as Ethereum gains mainstream recognition and understanding, demand for Ethereum ETFs will grow, driven by the desire to capitalize on its transformative potential.
The SEC’s ongoing investigation into Ethereum’s security classification and its decision on May 23 could have significant implications for Ether ETF applications and Ethereum’s future trajectory.