Crypto Exuberance Is Hitting Overdrive as Ether ETF Battle Looms

Crypto exuberance is hitting overdrive thanks to the game-changing launch of Bitcoin ETFs — with seven issuers now pushing US regulators to greenlight funds tracking Ether, the world’s second-largest cryptocurrency.

Yet the exchange-traded fund crowd — including those who battled to secure US Securities and Exchange Commission Chair Gary Gensler’s approval last time around — have a sobering message for digital-currency proponents: Not so fast.

Those issuers who are, for now, staying out of the Ether-filing race cite the token’s ambiguous legal status. Others caution that the SEC is unlikely to capitulate just because it approved 10 Bitcoin spot funds in January, given the big differences in the underlying market infrastructure.

The SEC has to respond to one of the filings by May 23, where the regulator will either approve or deny an application from VanEck. If they deny the request, issuers who are still looking to win approval will need to re-file applications, or they could challenge the regulator’s decision through litigation.

Ether has rallied amid expectations of a swift approval, with its roughly 50% rise so far this year mirroring Bitcoin’s attention-grabbing gains. Ether is the native token of Ethereum, the most commercially-used blockchain, which allows users to run applications on top of the protocol.

Ether and Bitcoin Rally