Approval of Spot Ethereum ETFs: Prospects, Forecasts and Market Impact
Date: 2024-05-13 Author: Henry Casey Categories: BUSINESS
Eric Balchunas, an expert at Bloomberg Intelligence, expressed his opinion on the likelihood of approval of spot Ethereum ETFs, shifting his forecast to December 2025. He emphasized that the outcome of the US presidential election plays a key role in this issue, considering Trump's candidacy more favorable for the cryptocurrency community.
If Donald Trump wins the presidential election, a change in leadership at the Securities and Exchange Commission (SEC) is expected, which could affect the potential approval of spot Ethereum ETFs. This opinion was expressed by Bloomberg Intelligence analyst Eric Balchunas.
Balchunas indicated that the SEC would likely reject applications after the final deadline at the end of May 2024, and predicted that these funds would not come to market until the end of 2025. The expert based his forecast on the lack of dialogue between ETF providers and the Commission, as other experts had previously pointed out.
After the SEC's filings are rejected, large companies such as BlackRock, Ark Invest and Fidelity Investments could sue the Commission, similar to Grayscale Investments. However, Balchunas acknowledged the low likelihood of such a development, citing possible fears of large ETF providers with the SEC.
The expert also expressed the opinion that Trump, although not a supporter of cryptocurrencies, still represents a more favorable option for the industry compared to Biden.
Earlier, Hayden Adams, founder of the Uniswap project, called on the current US President to change his attitude towards crypto assets.
