Ethereum ETFs Look Poised for SEC Approval by May 23

Ether (ETH) may be the only digital asset other than Bitcoin that has a high chance of getting ETF approval from the Securities and Exchange Commission because Ether, like Bitcoin, has successfully passed the so-called "Howey Test" and has been proven not to be a security. Otherwise, applications for ETFs could have been rejected because the SEC could have considered them a collective investment vehicle for an unregistered security, which is illegal.

Thus, the current ETH rally may continue with a target of $3,500.

The final deadline for the SEC's decision on the fate of ETH ETFs is May 23 this year, which is the last deadline for the first tranche of corresponding applications. In this context, it is noteworthy to recall that spot ETFs in the case of Bitcoin received approval at the last moment – i.e., the same scenario is likely to happen with ETH’s ETFs.

There are some skeptics though. According to S&P Global Ratings, potential Ethereum-based exchange-traded funds pose risks to the cryptocurrency ecosystem.

They think that the blocking of ETH in staking will lead to the situation where institutional investors will have “their own personal Coinbases” – a platform that will concentrate a significant supply of coins and may become a single point of vulnerability.