Speculation Mounts Over Potential Ethereum ETF Approval Amidst Cryptocurrency Political Maneuvering

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May 13, 2024 by Kashif Saleem

As the cryptocurrency market continues its volatile dance, recent developments have stirred up excitement and speculation among investors. A series of seemingly coordinated actions by major players in the crypto space has sparked rumors of imminent approval for an Ethereum ETF.

I’ve gotten BTC ETF approval correct every step of the way. Now let’s try ETH ETF

Putting on my Tin Foil Hat 🤠

→ Trump’s support for crypto=Joe Biden 100% will lose if he doesn’t support crypto. Crypto voters are huge population.
🐥Puppet masters activated.… pic.twitter.com/mJTMjs7C0v

— Chicken Genius (@pakpakchicken) May 12, 2024

The saga began with Grayscale’s filing for an S-3 conversion for its ETH trust to a spot ETF on April 23, followed by a surprise withdrawal of its ETH futures ETF application on May 7. Notably, Blackrock also filed an amendment for its 19b-4 ETH ETF on the same day as Grayscale, raising eyebrows within the community.

ARK Investment Management amended its staking plans for an Ethereum ETF on May 10, hinting at behind-the-scenes communications possibly preceding an ETF approval. Crypto enthusiasts have drawn parallels to the approval process of Bitcoin ETFs and have pointed to former President Trump’s vocal support for cryptocurrency, suggesting potential political implications for the current administration’s stance on crypto.

While scepticism persists, some traders are bracing for a potential surprise approval, with one observer dubbing it “max fuckery” if the SEC greenlights an Ethereum ETF in May. Whether these speculations will materialize into reality remains to be seen, but the crypto community remains on high alert for any developments.

SEC Extends Evaluation Period for Ethereum ETF

Citing the need for additional time to thoroughly evaluate the proposed rule change and the accompanying issues, the SEC expressed its intention to designate a longer period for consideration. This move follows previous postponements and requests for public commentary on the matter, underscoring the complexity and significance of the decision.

The delay comes amidst a series of extensions affecting various spot Ethereum ETF proposals, including those from industry giants like Grayscale, Franklin Templeton, VanEck, and BlackRock. Such repeated deferrals have contributed to a waning sense of optimism among market observers regarding the likelihood of SEC approval for these investment products.

Bloomberg ETF analyst Eric Balchunas notably revised his estimate of the chances for a spot Ethereum ETF approval by late May, reducing it from approximately 70% to a mere 25%. This shift reflects growing uncertainty surrounding the regulatory landscape and its implications for the cryptocurrency market.

Related Reading | SEC Chair Gensler ‘Trying to Destroy’ Crypto Industry, Billionaire Sounds Alarm

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