The introduction of the Spot Bitcoin ETF brought in an influx of new investors and led to a significant increase in trading volume. This trend has created a wave of optimism that extends beyond Bitcoin itself.
However, this will not hasten the launch of an Ethereum Spot ETF, as the U.S. Securities and Exchange Commission (SEC) is currently evaluating the possibility of such a fund. Despite the uncertainty, experts seem bullish about the trajectory of the world's largest altcoin.
Bullish outlook for Ethereum
Bitcoin is gearing up for another important event this year, the halving scheduled for April. Looking back at past halving events, for example, Matthew Siegel, head of digital assets at VanEck, shares a bullish outlook on Ethereum.
The executive expressed doubts about the occurrence of “flipping,” a scenario in which Ethereum overtakes Bitcoin as the leading crypto asset. However, he expects Ethereum to surpass Bitcoin in terms of performance.
In a statement to CryptoQuant, Siegel said:
“In the medium term, ETH will tend to outperform BTC during the halving, right? So we want to protect the trees and not lose the forest. I don’t think there will be a reversal, but as this year ends, ETH will I think it is outperforming BTC.”
Spot Ethereum ETF delay
VanEck executives discussed the regulatory challenges facing the U.S. asset class, noting that the government's reluctance to involve banks and brokers is a major stumbling block.
The cautious attitude of financial institutions has also affected the listing of crypto-asset-related ETFs, with the SEC once again postponing its decision to approve or disapprove BlackRock and Fidelity's Spot Ethereum ETF.
“The U.S. government doesn’t want banks and brokerages to touch these assets, right? So when you look at distribution strategies by asset managers and financial advisors, banks and bank-owned brokers also want these ETFs to be listed. You'll find yourself lagging behind or not listed as well. We expect that regulation to change over time, but this is a significant headwind and this is not an asset class in the US. We have to always remember that. This is anti-dollar.”
A similar sentiment was echoed by Jake Cherbinski, chief legal officer at cryptocurrency company Valeant. He said the SEC faces increasing political pressure and navigating market volatility, both of which could impact the decision-making process regarding Spot Ethereum ETFs.
