Senior analyst Eric Balchunas at Bloomberg has raised concerns about the uncertain fate of spot ethereum exchange-traded funds (ETFs) in the United States. Despite the SEC approving spot bitcoin ETFs, Ethereum faces unique hurdles that could delay its approval.
In an interview with DL News, Balchunas expressed skepticism about the likelihood of spot ether ETF approvals by the SEC before the looming deadline of May 23. He pointed out the limited interaction between the SEC and potential ETF issuers, regulatory ambiguities surrounding Ethereum’s classification, and the SEC’s ongoing investigation into the Ethereum Foundation.
While the SEC eventually approved spot bitcoin ETFs under legal pressure from Grayscale, Balchunas does not foresee a similar outcome for Ethereum. He highlighted the reluctance of potential issuers to engage in legal battles with the SEC, unlike Grayscale. The upcoming U.S. election results add further uncertainty, as changes in SEC leadership could impact future cryptocurrency regulations.
Balchunas speculated on the election’s potential impact, suggesting that a second term for former President Donald Trump could lead to a more crypto-friendly SEC chair, potentially expediting Ethereum ETF approvals. However, uncertainties remain regarding Trump’s stance on cryptocurrencies, despite signals of his support. Analysts also predict a bullish trend in bitcoin prices under Trump’s administration, but caution is advised given past SEC decisions.
The intersection of politics and crypto regulation continues to shape the future of ETF approvals, with Ethereum facing a challenging path to regulatory acceptance in the United States.