Spot Ether ETF decision looms, causing anxiety and division among crypto insiders

Anticipation is mounting as the United States Securities and Exchange Commission (SEC) approaches its decision on spot Ether exchange-traded funds (ETFs). Lucas Kiely, the chief investment officer of digital wealth platform Yield App, advised investors to proceed with caution despite the recent unexpected 20% surge in the price of Ether (ETH). Kiely emphasized that the SEC’s decision on the ETH spot ETFs could go either way and even if approved, a short-term pullback, similar to what happened with spot BTC ETFs, is likely. Jeff Owens, co-founder of blockchain Haven1, echoed this sentiment, highlighting the significance of the SEC’s potential approval of a spot ETH ETF. He also noted that altcoins, particularly those built on the Ethereum Virtual Machine, would likely experience a sector-wide rally if an approval is granted. Geoffrey Kendrick, head of FX research at Standard Chartered Bank, expressed an even more optimistic outlook, predicting significant inflows of funds, ranging from $15 billion to $45 billion, if the spot Ether ETFs are approved. The deadlines for VanEck’s ETF filing, as well as those of ARK Invest and 21Shares, are approaching. Eric Balchunas, senior ETF analyst at Bloomberg, recently increased the probability of approval to 75% from 25%, citing political pressure on regulators. Despite the growing expectations, there has been a notable increase in cryptocurrency volatility as the deadline draws near. Owens cautioned that an SEC rejection could lead to a significant price correction, while even if approved, a “sell the news” event could occur in the short term.