The possible SEC approval of the spot Ethereum ETF has everyone in the crypto space talking. Even strong voices, such as Anthony Pompliano, have suggested that this can be a momentous occasion for the whole crypto industry.
Anthony Pompliano’s Take on Ethereum ETF Approval
Anthony Pompliano is one of the prominent Bitcoin maximalists and entrepreneurs who have spoken on the potential approval of Ethereum ETF. Pompliano said in his recent tweet, “If they approve the Ethereum ETF, they are approving the entire industry. This is the last dam to be broken.”
If they approve the Ethereum ETF, they are approving the entire industry.
This is the last dam to be broken.
— Pomp 🌪 (@APompliano) May 21, 2024
He remarks that the approval of Ethereum ETFs will mean that Wall Street will fully embrace the crypto space, and this will be the pivot after the Bitcoin ETF approval.
Rising Odds and Market Reaction
According to recent news, the odds of the SEC’s approval of the spot Ethereum ETF have surged to 75%, up from the previous 25%. This has happened because Bloomberg analysts look positive in their latest assessment, along with the SEC seeking updates on 19b-4 filings from Nasdaq and CBOE.
The market reacted positively to these developments. Ethereum’s price soared above the $3,650 mark for the first time since April 9 and reached $3,735. The 20.7% price jump underscores the market’s anticipation and confidence in the potential approval.
Only some people in the crypto space are as optimistic. Dogecoin co-founder Billy Markus doesn’t believe the SEC will ever approve an Ethereum ETF this year. This division reflects the broader uncertainty and difference in expectations within the crypto community.
Uncertainty Still Prevails
Although the chances of the Ethereum ETF approval appear high, many regulatory challenges still need to be overcome. One major problem is that the SEC could label Ethereum as a security, which could compromise the whole approval process and the market in general.
Another factor is the SEC’s history of cautious and stringent oversight, especially under the crypto-sceptical Gary Gensler, which adds another layer of uncertainty. The regulator’s past reluctance to approve spot Bitcoin ETFs over market manipulation concerns, despite eventually being compelled to do so following a court challenge by Grayscale Investments, simply illustrates how the SEC can be unpredictable in making decisions.
Crypto Industry Ramifications
The approval of Ethereum ETFs would mark a watershed moment in the cryptocurrency industry, opening it up to a torrent of institutional investments. Companies such as Ark Invest, BlackRock, VanEck, and Grayscale have all filed submissions for spot funds based on Ethereum, following the precedent set by Bitcoin ETFs.
As such, Pompliano’s contention that this would “approve the entire industry” underlines the huge potential these moves hold for marking a landmark moment. It will mean regulators’ endorsement of it, driving further acceptability and integration of cryptocurrencies into the mainstream financial markets.
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