The expectation for the approval of an Ether exchange-traded fund (ETF) is heightened as the Securities and Exchange Commission (SEC) asked Nasdaq, CBOE, and NYSE to amend their applications for the crypto instrument by the end of Tuesday, Reuters reported.

Bringing Enthusiasm among Crypto Investors

Although there is no official confirmation, the regulator’s reported approach to the exchange has sparked enthusiasm in the crypto markets, as the dollar value of Ether has jumped significantly in the past couple of days.

Ether ETF hopes are revived on flurry of application updates https://t.co/JAw6mE8ikY via @business pic.twitter.com/3XJZC68aV8

— Yahoo Finance (@YahooFinance) May 21, 2024

However, even the SEC’s greenlight for the exchange’s application to list Ether ETFs would only be the first step in the approval process. The agency also needs to approve the ETF registration statements, which is a lengthy process that can take several months before they can start trading.

Meanwhile, the deadline for the SEC to decide on the applications filed by CBOE to list Ether ETFs provided by VanEck and ARK Investments/21Shares is the end of the ongoing week. However, the regulator has yet to engage with the exchange or the issuers on filing details, signalling another delay in the approval. Earlier, the SEC delayed decision on BlackRock's Ether ETF application.

Bitcoin ETFs Cleared the Path

After delaying for a decade, the SEC approved 11 Bitcoin ETFs in one go last January. As anticipated, the move resulted in a Bitcoin rally as it brought the cryptocurrency closer to regular retail and institutional investors.

Earlier this week, Eric Balchunas, a senior analyst at Bloomberg, also raised the odds of approval of a Bitcoin ETF from 25 percent to 75 percent. His decision was based on the political pressure faced by the SEC to decide on the Ether ETFs. He also pointed to the regulator’s communication with the NYSE and Nasdaq to amend their filings.

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

Interestingly, the policies around cryptocurrencies have entered US party politics. Donald Trump, the former US President who is running again in the US Presidential election, directly criticised the Biden Administration and the SEC Chair, Gary Gensler, for their anti-crypto policies. Trump even started to accept donations in cryptocurrencies.