The U.S. Securities and Exchange Commission (SEC) is preparing to adopt a similar approach to approve a spot Bitcoin (BTC) exchange-traded fund (ETF) to be replaced by a spot Ethereum ETF, which is expected to Agree According to Standard Chartered’s analysis, the project will be approved by the original final deadline of May 23.
Ethereum ETF faces delays, approval still possible
according to a Report Geoffrey Kendrick, head of FX and digital asset research at Standard Chartered Bank, said they expect the Ethereum ETF spot application to be approved on May 23, a date considered to be comparable to the Bitcoin ETF’s January 10.
Additionally, Kendrick predicted that if Ethereum prices follow a similar trajectory to Bitcoin prior to ETF approval, Ethereum could trade as high as $4,000 by a given date.
Kendrick Further Supports SEC Approval of Ethereum Classification as Ethereum Spot ETF non-security Legal action taken against cryptocurrency companies.
Additionally, the fact that Ethereum is listed as a regulated futures contract on the Chicago Mercantile Exchange (CME) has increased expectations for approval.
Along the same lines, financial lawyer Scott Johnsson offers insights into the potential. route map For the Ethereum ETF. Johnsson stressed that while long-term approval for a spot Ethereum ETF is highly likely, there could be short-term delays due to ongoing regulatory actions involving the Coinbase/Binance stock exchanges.
Shorter path to ETH ETF approval?
Johnson highlight Take Bitcoin as an example, the regulatory path from ordinary spot digital assets to spot ETF products. Johnson noted that Bitcoin’s development process took seven years and involved multiple steps and opposition along the way.
However, Johnson noted that Ethereum’s timeline is being compressed, with applications open for both futures ETFs and spot ETFs. He raised certain prerequisites that Johnson believes may no longer be needed for spot approval, such as step 3, which requires the SEC to issue formal 19b-4 approval for futures ETFs.
Johnson highlighted two key factors in understanding the SEC’s current approach to future approvals, including for Ethereum. First, he discussed the “threshold” issue. gray scalethe focus is on correlation analysis.
Second, Johnson highlighted the SEC’s perspective, subject to the recent BTC approval order, which took into account correlation with the CME, longer sample periods, intraday trading data, and consistency across the entire sample period.
While the specific threshold of sufficiency remains unknown, Bitcoin’s correlation analysis is within acceptable limits.Therefore, it is expected that Ethereum will most likely satisfy this critical point Johnson said that for the foreseeable future.
Once the required correlation level is achieved, Johnsson believes that a spot Ethereum ETF may be approved soon, with approval expected in May.
Overall, industry analysts and experts believe that barring any major legal changes, it is only a matter of time before the SEC approves an Ethereum ETF spot.
ETH is currently trading at $2,370, up more than 2% in the past 24 hours and more than 7% in the past seven days, following Bitcoin’s gains.
Featured image from Shutterstock, chart from TradingView.com
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