The recent approval of the spot Bitcoin exchange-traded fund (ETF) has sparked optimism among investors, leading them to anticipate continued growth in the cryptocurrency. Ethereum ($ETH), the second most popular cryptocurrency with a market cap of $305 billion, could be the next in line for a spot ETF.
Several companies, including BlackRock and Ark, have applied for a spot Ether ETF, and the Securities and Exchange Commission (SEC) is expected to make a decision by May. Despite Ethereum’s rising value in tandem with Bitcoin, some, like TD Cowen, believe that SEC approval may not happen until after the U.S. federal election. The reasoning is that the SEC would prefer to gain experience from Bitcoin ETFs before approving a similar product for Ethereum or any other cryptocurrency.
While Ethereum’s approval timeline remains uncertain, investors are encouraged to approach the situation with realistic expectations. The SEC took over two years to approve a spot Bitcoin ETF, so a similar timeline for Ethereum is not surprising. It’s crucial for investors to be patient and not set overly optimistic expectations for a May approval. Despite potential volatility, investing in Ethereum now, given its strong prospects and positive regulatory sentiment, could be opportune for those bullish on crypto.
