Ethereum ETFs Have 60% Chance Of 2024 Launch, Says ETF Expert: Approval Is 'Path Of Least Resistance'

Bloomberg Intelligence ETF analyst James Seyffart on Friday said spot Ethereum ETH/USD ETF applications are likely to get approved this year, as he emphasized the significance of the United States' approval of the spot Bitcoin BTC/USD ETFs.

"The approval of the spot Bitcoin ETF in the United States was monumental due to the SEC's resistance to it," he said in a podcast.

He highlighted the long journey to this approval, noting that the Winklevoss twins first filed for a Bitcoin ETF in 2013, but faced continuous denials from the SEC.

The approval, according to Seyffart, adds regulatory clarity and opens doors for more efficient investment vehicles in the crypto space.

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Discussing the mechanics of ETFs, Seyffart pointed out the differences between spot and futures ETFs.

He stated, "Spot Bitcoin ETFs are immensely more efficient for any investor compared to futures ETFs." He elaborated that spot ETFs hold the underlying asset directly, making them more cost-effective and straightforward for long-term investments.

Turning to Ethereum ETFs, Seyffart expressed optimism but also caution. "I think it's more likely than not we'll get a spot Ethereum ETF in 2024," he said, though he speculated that initial approvals might not include staking options.

Seyffart sees an approval as the "path of least resistance" and puts a 60% likelihood of that occurring, expecting the SEC to "wage war on the rest of crypto." However, he is "nowhere near as confident" as he was with spot Bitcoin ETF approvals.

Seyffart also noted the political undercurrents influencing the SEC's decisions, suggesting that while there are legitimate concerns, much of the hesitancy around approving crypto ETFs has been politically motivated.

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