May 10, 2024

Ethereum ETF 2024: Investors keep waiting

SEC once again delays approval of Ethereum ETF. Investors, users, and other interested parties will have to wait until June for a “yes”, a “no” or another “maybe”.

Ethereum ETF

The recurring delays in the approval of the Ethereum exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) worries investors interested in this approval, in addition to having a major impact on the crypto active market. 

The cryptocurrency industry remains in suspense with the SEC’s recent decision to once again postpone the approval of an Ethereum ETF. This extends a series of delays that have characterized the agency’s regulatory approach to cryptocurrency-based products.

The SEC’s caution with the Ethereum ETF

The official reasons given by the SEC for the lateness focus on the need for more time to evaluate the implications of the proposed product and to resolve complex regulatory issues. The agency has expressed concerns about cryptocurrency market volatility, risks of market manipulation, investor protection, and the suitability of traditional markets to handle innovative products with a significantly different risk profile. These factors, as indicated in SEC releases, are important to ensure that market structures can support the secure integration of such products without compromising existing regulatory standards.

In addition, experts in the financial and cryptocurrency markets point to other possible motivations for the postponements. Some analysts suggest that the SEC’s hesitation may also reflect uncertainty about how to structure regulations that adequately address the unique nature and rapid evolution of cryptocurrencies. There is a perception that the SEC is not just assessing the specific risks associated with Ethereum. But also to observe and learn from market behavior in response to similar products in other jurisdictions, or in relation to Bitcoin, which has already seen the approval of ETFs.

Meanwhile, the community of investors and crypto enthusiasts continues to wait for a resolution that could finally bring technological innovation into line with existing regulatory frameworks.

Also, the SEC is considered wary of setting a precedent that could accelerate the adoption of crypto assets as a mainstream investment class. And this before the market is mature enough to support a massive influx of institutional capital without adequate regulatory safeguards. This stance aims to a delicate balance between promoting financial innovation and protecting the interests of investors, especially the less experienced, who may not be fully aware of the risks.

Impact on the market and investors

Ethereum ETF effect

The impact of the delay in approving an Ethereum ETF was immediate, with direct repercussions on the price of Ether, the network’s native cryptocurrency. After the announcement, there was a huge drop in market value. Furthermore, the postponement contributes to an uncertainty that could negatively affect market sentiment in the short term. This volatility is exacerbated by many investors viewing the approval of an ETF as a sign of the token’s market maturity and a validation of its legitimacy as an investible asset class.

However, in the long term, some experts remain optimistic about Ethereum’s prospects, especially considering the network’s continued development, which supports its growth regardless of immediate regulatory decisions. And such trust is important for the stability and growth of any financial market.

While the SEC’s delays in approving an Ethereum ETF may appear merely procedural, its implications are profound, modifying everything from price stability to the global perception of the token as a viable investment. With this, new doubts and speculations arise, shaping market trends and influencing investor decisions across the financial spectrum.

Even so, new crypto investors may see these delays as warning signs, choosing to wait or redirect their investments to more traditional assets or to other cryptocurrencies that already have structured investment products, such as Bitcoin. Regulatory indecision, rather than simply representing a bureaucratic impasse, directly influences market volatility, investor confidence and long-term institutional adoption strategies.

For the broader cryptocurrency market, Ethereum ETFs are seen as gateways to large-scale institutional adoption. Exchange-traded funds provide a bridge between the traditional financial world and cryptocurrency markets, allowing pension funds, insurance companies and other large investors to allocate resources in a regulated and protected manner. Delays in the approval of these ETFs, therefore, not only affect the long-term planning of these institutions, but also slow the integration of cryptocurrency into the global financial ecosystem.

Approval vs. Non-approval

Ethereum ETF approval

The eventual approval of an Ethereum ETF would be a milestone for the industry, further legitimizing cryptocurrency as a major asset class and paving the way for broader institutional adoption. And this would be a sign that it meets the strict regulatory standards required for traditional financial products. Furthermore, it could encourage more institutional investors to enter the cryptocurrency market, for example.

With an ETF, investors who prefer not to directly deal with the complexities of purchasing and storing cryptocurrencies could easily invest through traditional channels, such as their brokerage accounts. The inflow of more institutional capital could lead to greater stability in token prices, as the market would expand to include more participants with long-term investment strategies.

On the other hand, a prolonged rejection could temper the expansion of the crypto asset in the traditional investment sector, while perhaps strengthening the DeFi ecosystem that is largely based on the network. The continued refusal to approve an Ethereum ETF could be perceived as a lack of regulatory confidence in the stability or security of the cryptocurrency. Which also could lead to a negative market reaction.

Without the option of an ETF, many large investors could remain hesitant to invest directly in Ethereum due to security, custody, and regulatory compliance concerns. The absence of a significant inflow of institutional capital can keep price volatility relatively high, maintaining the status quo that defies market predictability. While the sector may continue to grow, the lack of an ETF could limit the speed of adoption by more conservative and regulated investors.

Karla de Matos

Finance Journalist

Financial journalism, cryptocurrency analysis, multilingual communication strategies, education in international markets

Karla Ruiz de Matos is a multifaceted journalist and writer with a deep specialisation in cryptocurrencies, technology, finance and international markets. Fluent in English, Spanish and Portuguese, Karla has a diverse career that reaches multiple continents and cultures, making her a distinctive voice in financial and technology journalism.


Karla began her academic journey in Brazil, where she studied Accounting through a BTEC at SENAC RJ, developing a solid foundation in finance. She then moved to England, where she obtained a BA (Honours) in Linguistic Studies, with a focus on English and Spanish.

The passion for communication and technology led her to further her knowledge in Europe, where she completed an MSc in Digital Marketing, Communication and Social Media at IMF Business School, with a special emphasis on the European market. Additionally, Karla expanded her expertise in digital marketing by completing a DipHE from the Veiga de Almeida University, focussing on the specific dynamics of the Brazilian and Latin American markets.

Continuing her commitment to constant improvement, Karla is currently studying for a master’s degree in Spanish writing at the prestigious University of Salamanca in Spain. This new academic challenge reflects her desire to further deepen her linguistic and editorial skills, consolidating the ability to create impactful content in multiple languages.

Professional experience

Since 2023, Karla has worked as a writer for crypto news channel, where she produces well-founded, insightful and engaging content about analysing altcoin prices for the US market. Simultaneously, she writes news in Spanish for the Spanish and LATAM markets, and in Portuguese for the Brazilian market, covering topics such as iGaming, finance, crypto, politics and technology.

With more than a decade of writing experience and five years dedicated specifically to financial journalism, Karla has built up a broad experience working for renowned companies, such as GreenTomatoMedia, Finixio, Plastow Media and NSN. She is currently part of the AltSignals team, where her expertise continues to enrich the coverage of complex topics in the world of finance and cryptocurrencies

Publications and accomplishments

Although Karla has published two books in Brazil and one in Portugal, her professional focus is firmly rooted in digital journalism. Her approach is informed by a philosophy of rigorous confirmation of information, ensuring that her reports are always based on reliable and verified sources.
Interests and motivations
Karla is driven by a passion for numbers and words, which led her to explore the intersections between finance and communication. From an early age, her interest in the financial dynamics of different countries shaped her career, focusing on understanding and analysing global financial realities through the lens of cryptocurrencies and technological innovations.

Vision for the future

Looking to the future, Karla aspires to consolidate her position as a leading financial journalist, recognised for the credibility and actuality of her journalistic reports and articles. Her aim is to be the primary source for anyone seeking to understand the latest trends and developments in the world of cryptocurrencies and finance, always providing context and detailed analysis.

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