ETH ETFs Are Inevitable — But When?
The SEC has delayed the decision on BlackRock's ETH ETF proposal, using similar language as in the Fidelity Ethereum Fund delay. Market analysts predicted this decision. The approval process for an ETH ETF is more complex than for bitcoin ETFs. BlackRock's exchange surveillance protocol and concessions from ETF issuers led to bitcoin ETF approval. ETH futures ETFs are already live, but Gensler's announcement does not signal willingness to approve crypto asset securities. SEC Commissioner Hester Peirce is hesitant to predict the fate of any particular crypto product. Gensler has raised concerns over ETH's decentralization, and ongoing lawsuits against crypto exchanges offering staking services make an ETH ETF approval challenging. The SEC's delaying action may ultimately work out in ETH's favor.
