Noted ETF analyst from Bloomberg, Eric Balchunas, has voiced concerns over the seemingly absent communication from the SEC towards Ethereum (ETH) ETFs issuers, foreseeing a potentially bleak future for Ether ETFs approval by May.
With less than 73 days remaining until the final cutoff, Balchunas is troubled by the lack of dialogue from the SEC towards issuers who, without any guidance, are left uncertain about impending regulatory changes.
Balchunas stresses the importance of open communication between the SEC and issuers, especially given the close deadline; a lack thereof might lead to confusion, errors and could jeopardize the overall goal of the regulations.
The analyst pointed out potential challenges associated with SEC Chair, Gary Gensler’s view of Ether as a security rather than a commodity. Balchunas suggests previously witnessed political backlash from the approval of Bitcoin spot ETFs might make Gensler cautious to initiate similar discussions on Ether.
Upon comparing the ETF process for Ether and Bitcoin, Balchunas finds Ether’s prospects less promising due to limited public backing, despite its huge market presence. Balchunas believes that Ether’s ETF journey could be hindered due to less enthusiastic investment support as compared to Bitcoin.
Yet, recent communication between crypto exchange Coinbase, asset manager Grayscale, and the SEC could spark hope for Ether ETF enthusiasts. However, Balchunas urges investors to exercise caution, citing possible volatility between futures and spot prices for both Ether and Bitcoin.
He further suggested that should the SEC reject all Ethereum ETF applications, investors might see a significant shift in the investment landscape, making Tuesday, November 5th a potentially critical turning point.
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