Spot Bitcoin ETF turned Out to be really Successful for Bitcoin. Heavy Inflows In Bitcoin Spot ETF as Blackrock Currently Hold 300,000 + Bitcoins in Less than 3 Months Since Bitcoin ETF Approval.
But, Some Bad News. Top 3 Reason Why Ethereum won’t see Stop ETF Approval In 2024
1 ) SEC Consider ETHEREUM as a Security (As Of Now)
SEC and ethereum has Complicated Relationship and SEC made it Clear in Bitcoin Case that they Consider Bitcoin as a Commodity Mainly Due to Proof Of Work Concept
Ethereum is a Security Or Commodity Debate intesified when Ethereum Transitioned to Proof Of Stake.
While SEC has not Declared Whether ETHEREUM is a Security or Commodity. But it’s unlikely they will decide to approve Spot Ethereum ETF in 2 months when the deadline for Spot Ethereum ETF is May 23, 2024
2) Ethereum Price Action Is Absurd
Looking at the Ethereum Chart While Bitcoin has made a new all time high. Ethereum lacking behind significantly by 40% Still below the All time high of Ethereum.
The Price action Tells A Story. No Significant Hype Around the ETF ethereum / bitcoin is at an All time Low Which is Crazy In our Opinion.
Remember when Bitcoin ETF had so much Hype and price started to catch up mid 2023.
Institutions who filed for Ethereum Spot Etf (Vaneck and Ark 21Shares) have lack of Confidence on the decision of SEC on the approval.
3) Ethereum Proof Of Stake Transition
While there are many benefits of proof of stake transitioning of ethereum blockchain but this could be possibly one of the main reasons why sec may reject the spot ethereum ETF
While this is our opinion on why etherium spot ETF may get rejected or get approved this year or maybe next year.
