FameEX Hot Topics | Standard Chartered Modifies Prediction: Uncertain About SEC's May Approval for Spot Ether ETFs

Standard Chartered has adjusted its expectations regarding the approval of spot ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Initially optimistic following the SEC’s approval of Bitcoin ETFs in January, the bank has now moderated its outlook for the immediate future of ether ETFs, though it continues to hold a positive view on their long-term prospects.

Geoffrey Kendrick, the head of forex and crypto research at Standard Chartered, reported that the bank was anticipating a May 23 approval date for ether ETFs, drawing on similarities with the Bitcoin ETF approval process. Kendrick expected a proactive engagement between the SEC and ether ETF applicants similar to that which facilitated the approval of Bitcoin ETFs. However, he has noted a lack of such interaction so far, casting doubt on the possibility of a May approval. "So far, however, no such dialogue has occurred (or at least been made public), suggesting that a May 23 approval date is unlikely," Kendrick stated.

Despite these challenges, Kendrick remains optimistic about the overall future of cryptocurrencies. He believes that the gradual elimination of adverse factors will allow positive drivers of Bitcoin’s value to prevail, which in turn would benefit Ethereum. He also noted that the global environment for ETFs is improving, fostering hope for eventual U.S. approval, even if it doesn’t occur in May.

The broader financial community also appears less hopeful about a May approval for ether ETFs. Jan Van Eck, CEO of Vaneck, along with analysts from Ark Invest, do not expect the SEC to approve their applications this month. JPMorgan analyst Nikolaos Panigirtzoglou is similarly cautious, giving only a 50% chance of approval in May. He suggests that while approval is likely, it could be delayed by potential legal challenges.

Complicating the situation further is the SEC’s unclear position on ether. SEC Chairman Gary Gensler has previously indicated that most cryptocurrencies, excluding bitcoin, are securities, yet has not clarified ether's classification. This ambiguity led 48 U.S. lawmakers to recently seek clarity from Gensler regarding whether ETH is considered a security.

This evolving regulatory environment reflects a cautious yet changing approach to cryptocurrency regulation in the U.S. The uncertainty over ether’s status and the anticipation of regulatory approvals are significantly influencing market dynamics and strategic planning within the financial sector, highlighting the complex interplay between regulatory actions and market responses.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.